By Andrew Stiles
Thursday, March 14, 2013
Senate Democrats on Wednesday officially unveiled a
budget resolution for the first time in nearly four years. It presents a stark
contrast to the latest offering by House Republicans, which achieves balance
within a decade without raising taxes. The Democratic proposal never balances,
and calls for a $1 trillion tax increase, at least $100 billion in stimulus
spending, and a smattering of nebulous spending cuts, most of which can be
chalked up to accounting gimmicks.
Now that Senate Democrats have finally put their plan on
paper, it is not hard to understand why they have been so reluctant to do so.
For one, it is far easier to demagogue an opponent’s proposal without a serious
plan of your own to defend. In almost all respects, the Democratic budget is a political
testament to President Obama’s insistence that “we don’t have an immediate
crisis in terms of debt.”
Democrats, though, don’t seem worried — yet. Senate
Budget Committee chairman Patty Murray (D., Wash.) expressed confidence that
the American public’s verdict in the 2012 election was a repudiation of the
House Republican budget authored by Paul Ryan, and a mandate for the “balanced,
responsible approach” Democrats are offering. Budgets, she said Wednesday
during a committee hearing, were less about “abstract numbers,” and more about
“values” and “priorities.”
Murray’s budget, which is woefully light on specifics,
essentially embodies what former Treasury secretary Timothy Geithner told Ryan
last year: “We’re not coming before you today to say we have a definitive
solution to that long-term problem. What we do know is, we don’t like yours.”
Prior to Wednesday’s hearing, Murray circulated a list of
talking points, nearly half of which was devoted to explaining what her budget
doesn’t do — “dismantle Medicare,” “make cuts that harm seniors and the most
vulnerable families” — and was, essentially, a laundry list of familiar
Democratic attacks on the GOP budget.
Democrats will argue that their budget reduces the
deficit by $1.85 trillion over the next decade, resulting in more than $4
trillion in total deficit reduction since 2011. Most of those savings would
come in the form of a $1 trillion tax increase, or “closing loopholes and
ending wasteful spending in the tax code that benefits the wealthiest Americans
and biggest corporations.”
This is how many Democrats define “tax reform.” Murray,
however, has enraged Senator Max Baucus (D., Mont.), one of her party’s most
vocal advocates for bipartisan tax reform, by including reconciliation
instructions in her budget that would make it easier for Democrats to jam
through tax increases in the Senate. “Reconciliation would kill the possibility
of doing any tax-code simplification,” Baucus’s office told Breitbart News.
The spending cuts Murray has proposed are dubious, at
best. They include $242 billion in reduced interest payments, which are not
typically counted as new savings, and $240 billion in defense cuts apparently
gleaned from the “war gimmick,” counting savings from the military drawdown in
Afghanistan, which is already current policy. Additionally, The Hill noted,
since Murray’s budget eliminates the sequester, it is actually proposing a net
increase in spending compared with the Congressional Budget Office baseline.
Meanwhile, the $100 billion in new stimulus spending is carefully described as
a “targeted economic recovery protection plan” charged with “tackling our
serious deficits in infrastructure, education, job training, and innovation.”
Though many Democrats likely share Murray’s belief that
Obama’s reelection was an endorsement of the vision outlined in her budget, the
half-dozen or so red-state incumbents up for reelection in 2014 are probably
not thrilled at the prospect of voting for a plan that hikes taxes by $1
trillion and does little to get the nation’s debt problem under control. In
fact, Guy Cecil, executive director of the Democratic Senatorial Campaign
Committee, recently suggested that voting for the plan could be a liability for
red-state Democrats such as Kay Hagan (N.C.), Mark Pryor (Ark.), Mary Landrieu
(La.), and Mark Begich (Alaska). That could become a problem for Senate
majority leader Harry Reid, since Democrats can afford to lose only five votes
if they hope to pass their budget.
Expect Republicans to pounce. Due to the nature of the
budget process, GOP lawmakers will be able to offer dozens of amendments on the
Senate floor, and force vulnerable Democrats to cast difficult votes on tax and
spending issues. Most congressional Republicans are thrilled to finally have a
Democratic alternative with which to compare their party’s own fiscal plan.
“It’s going to be nice to be able to play some offense this time around,” a GOP
aide says. “I think it’s going to become abundantly clear why Democrats have
avoided this process for so long.”
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