Democrat Leaders Refuse Serious Spending Cuts, Propose Tax Hikes Instead

By William Warren

Today in Washington, D.C. - March 9, 2011
At 10:40 AM Senators proceeded to the House of Representatives for a Joint Session of Congress where Prime Minister Julia Gillard of Australia addressed them.

At noon the Senate began consideration of H.R. 1, the House-passed bill funding the government for the rest of Fiscal Year 2011 and cutting spending by $61 billion. Up to three hours of debate are scheduled.  Around 3 PM, the Senate will vote on the Democrats’ plan, a substitute amendment from Sen. Daniel Inouye (D-HI), the chairman of the Appropriations Committee. The Inouye substitute would fund the government for the rest of the fiscal year but cut a paltry $4.7 billion.

Following that vote, the Senate will vote on passage of H.R. 1. Both the House bill and the Inouye amendment will require 60 votes to pass. Disappointingly I must add that yesterday, the Senate voted 95-5 to pass S. 23, the patent reform bill.

This afternoon, the Senate will be voting on competing budget plans for the rest of the current fiscal year, the House Republicans’ bill, which cuts $61 billion in spending, and the Senate Democrats’ plan, which cuts only $4.7 billion.

On the floor this morning, Senate GOP Leader Mitch McConnell said, “At a time when Washington is borrowing about $4 billion a day, Democrat leaders want to cut about four and a half billion in government spending for the rest of the fiscal year, and then call it a day. In other words, they want to take what amounts to a day and a half long holiday from their out-of-control spending and then return to the status quo for the rest of the year.”

Yet there are a few Democrat senators who seem to understand just how inadequate the proposal from their leaders is. The Hill reports, “Sen. Claire McCaskill said Wednesday that she'll vote against her party's deficit reduction plan when it comes up for a vote today.” And TPM reports, “‘More cuts, more cuts,’ Sen. Claire McCaskill (D-MO) shouted to reporters when asked what she wanted to see from the President on the budget talks.” Sen. Ben Nelson (D-NE) told The Wall Street Journal, “It was a little light on cuts.” And yesterday, Sen. Joe Manchin (D-WV) blasted the Democrat bill, saying it “utterly ignores our fiscal reality.” Manchin added, “[W]e must turn our financial ship around, but the Senate proposal continues to sail forward as if there’s no storm on the horizon.”

But Democrat leaders seem to be suggesting the next step is not getting serious about spending cuts. Rather, they’re advocating for tax hikes in the middle of a recession. Politico writes today, “Sen. Chuck Schumer (D-N.Y.) stepped into the budget negotiations fray Wednesday daring Congress to hit the ‘reset button’ and consider tax hikes alongside spending cuts if they’re serious about reducing the deficit.” Democrat leaders have already proposed a “minivan tax” of $40 billion in new taxes on energy producers at a time when the average price of a gallon of gas has surged past $3.50.

As Sen. McConnell said, “At a time when increasing gas prices are already threatening our economic recovery, a minivan tax that some on the other side have proposed won’t solve our nation’s fiscal crisis. But I’ll tell you what it will do: it will destroy jobs and impose a real on burden families every time they fill up at the pump — at a time when people are looking for relief instead. Democrats’ steadfast refusal to cut another dime from the bloated Washington budget has left them no choice, it seems, but to propose raising taxes on American families and small businesses so that they can continue spending at unsustainable levels.”

---

Tags: Washington, D.C., US Senate, US House, federal spending, continuing resolution, patent bill, Economic Crisis, Middle East Crisis, Nero, Barack Obama, Political Cartoons, Rome is Burning, U.S. Economy, William Warren To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!