Democrats Agree On A $2.9 Trillion Budget That Includes The Largest Tax Hike In U.S. History

Andrew Taylor, "Democrats Agree On $2.9 Trillion Budget," AP, 5/16/07:
* Democrats' budget fails to extend all the 2001 and 2003 tax cuts.
* Democrats ... announced agreement on a $2.9 trillion budget blueprint for 2008, promising a budget surplus in five years but only by allowing some of President Bush's tax cuts to expire."
* Senate Budget committee member, Sen. Judd Gregg (R-NH) said the Democratic plan would produce 'the largest tax increase in U.S. history, billions in new spending, and no attempt to address the long-term fiscal crisis' in retirement programs and Medicaid, the health care program for the poor and disabled.

The Democrat Budget Calls For More Washington Spending:
* The democrats' budget plan increases spending by $21 billion above the president's request. "The deal announced Wednesday ... would allow $954.1 billion in fiscal 2008 discretionary spending.... That total, which does not include war spending, is $21 billion more than the White House's budget request, and this difference grows to $23 billion when $2 billion in advance appropriations are included." (David Clarke, "Hill Confronts President On Spending," CQ Today, 5/16/07)
* A 26-member coalition, including The National Taxpayers Union (NTU), Citizens Against Government Waste, and Americans For Tax Reform called on Congress to retrain spending: "Senate and House Budget Resolutions propose to raise taxes; create new 'reserve funds' to raise taxes further; employ budgetary gimmicks they themselves have criticized; and all while ignoring the impending crises in Social Security, Medicare and Medicaid." (NTU, Accessed 5/17/07)

Forgotten Promises: Speaker Nancy Pelosi (D-CA) And Senate Majority Leader Harry Reid (D-NV) promised to be committed to fiscal discipline and not to raise taxes:
* Pelosi: "What we're saying is Democrats proposed tax cuts for middle-income families. And we want to have 'pay go', no new deficit spending. We're not going to start with ... repealing tax cuts." (CNN's "Newsroom," 1/7/06)
* Pelosi: "Democrats will restore fiscal responsibility to ensure a vibrant and growing economy." (Rep. Pelosi, "Pelosi: Democrats Will Restore Fiscal Responsibility To Ensure A Vibrant And Growing Economy," Press Release, 10/25/06)
* Last Nov., Reid Said He Wouldn't Raise Taxes. CBS' Bob Schieffer: "The president, throughout this campaign, said all Democrats want to do is raise taxes. Tell us what you plan to do. Are you going to raise taxes? Is it inevitable that taxes will be raised?" Sen. Harry Reid: "The answer is no." (CBS' "Face The Nation," 11/12/06)
* Reid: "Democrats are ready to work with the President to address our record deficits and restore fiscal discipline." (Andrew Taylor, "Bush Pushes Balanced Budget On Democrats," AP, 1/4/07)

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Tags: Budget, Democrats, Excessive spending