Politics

Senate Dems’ First Proposed Budget in 4 Years Adds $4 Trillion to National Debt, Includes $1 Trillion in New Tax Hikes

Senate Dems First Proposed Budget in 4 Years Would Add $4 Trillion to National Debt and $1 Trillion in New Tax Hikes

Senate Budget Committee Chair Patty Murray, D-WA, (R) holds up a layoff notification during a news conference at the US Capitol on the eve of the budget sequester on February 28, 2013 in Washington, DC.Β  Credit: AFP/Getty Images

WASHINGTON (TheBlaze/AP) — Senate Democrats unveiled a largely stand-pat budget Wednesday that calls for $1 trillion in new tax revenues over the coming decade but actually increases spending, while protecting the party’s domestic policy priorities and adding $4 trillion more to the national debt rather than a slashing alternative from House Republicans.

It is Senate Democrats’ first proposed budget in four years.

The plan by Budget Committee Chairwoman Patty Murray (D-Wash.) blends about $1 trillion in modest cuts to health care providers, the Pentagon, domestic agencies and interest payments on the debt with an equal amount in new revenue claimed by closing tax breaks.

But because Democrats want to restore $1.2 trillion in automatic spending cuts over the same period – cuts imposed by Washington’s failure to strike a broader budget pact – Murray’s blueprint increases spending slightly when compared with current policies.

On the other side of Capitol Hill, House Budget Committee Republicans barreled ahead with an entirely opposite approach that whacks spending by $4.6 trillion over the coming decade, promises sweeping cuts to Medicaid and domestic agencies while setting a path to balancing the government’s books within 10 years.

The House panel was expected to approve the plan, by Chairman Paul Ryan (R-Wis.) late Wednesday by a party-line vote; Murray’s plan was set to be approved by the Democratic-led Senate panel on Thursday. Both measures face floor debates next week.

Even as Democrats controlling the Senate and the strongly conservative House moved in divergent directions, President Barack Obama again traveled to the Capitol to open a dialogue with lawmakers. Wednesday’s meeting was with House Republicans, who welcomed the gesture even as they noted that deep divisions remain.

“We’ve got a big difference between us,” said Rep. Greg Walden (R-Ore.). “He supports higher tax revenues.”

But Rep. Tom Cole (R-Okla.) said Obama told Republicans that he also supports a revised inflation adjustment called “chained CPI” that would curb cost-of-living increases in Social Security benefits and increase tax revenue through slower indexing of income tax brackets. He also supports “means testing” for Medicare benefits that would require higher-income beneficiaries to pay more for their health care.

Cole said Obama told them everyone needs to honestly confront the political barriers to reining in popular benefit programs like Medicare and Social Security. “He said, `Your people don’t want entitlement reform either. Go home and poll them.’”

The debate in the Senate Budget Committee was the first time since 2009 that Democrats in charge of the Senate have advanced a budget blueprint, which opened to predictably poor reviews from the panel’s Republicans, who said it’s heavy on tax increases and light on cuts to rapidly growing benefit and safety net programs.

“Is it really possible that after four years, the majority has failed to identify any reforms? That all we have is just a tax-and-spend budget that makes no alteration to our dangerous debt course?” said the top Budget Committee Republican, Sen. Jeff Sessions of Alabama. “Does the majority believe the government is perfect and requires no reform?”

At issue is the arcane and partisan congressional budget process, which involves a unique, non-binding measure called a budget resolution. When the process works as designed – which is rarely – budget resolutions have the potential to stake out parameters for follow-up legislation specifying spending and rewriting the complex U.S. tax code.

This year, it’s taken as a given that the tea party-driven House and Democratic-led Senate won’t be able to resolve their differences absent an agreement driven by the president. Obama has had two failed rounds of talks with House Speaker John Boehner (R-Ohio) and now seems to be looking to the Senate as a potential partner with which to spark a potential breakthrough.

In that context, the rival Murray and Ryan budget plans don’t seem to offer a path forward. Even a cursory look at them reveals gaping differences.

Ryan’s plan promises to cut the deficit from $845 billion this year to $528 billion in the 2014 budget year that starts in October. The deficit would drop to $125 billion in 2015 and hover pretty much near balance for several years before registering a $7 billion surplus in 2023.

Murray’s plan, by contrast, promises a $693 billion deficit in 2014, dropping to the $400 billion range for the middle years of the decade. While large, such deficits would hover just above 2 percent of gross domestic product, a level that many analysts see as economically sustainable.

Democrats warn that the slashing cuts proposed by Ryan would impose austerity that would slam the economy into a tailspin; Republicans counter that reducing the drag that spiraling debt is placing on future generations is critical to long-term economic growth.

Ryan’s plan embraces tough new spending levels required under the unpopular, across-the-board spending cuts known as a sequester that began to take effect this month. But in order to protect the Pentagon, Republicans cut even more deeply into the day-to-day operating budgets of domestic agencies next year, slashing them from the $506 billion projected under the 2011 debt and budget pact to $414 billion – an unprecedented 18 percent cut.

Over 10 years, Republicans propose cuts to non-defense agency budgets $895 billion below those envisioned less than two years ago.

House Appropriations Committee Chairman Harold Rogers, R-Ky., responsible for implementing those cuts, is declining comment. The proposed spending cuts, if not changed, are likely to hamstring efforts later this year to advance the annual spending bills for domestic agencies.

Murray’s budget, meanwhile, not only preserves the spending “caps” set in the hard-fought 2011 deal but proposes $100 billion in stimulus spending for road and bridge construction, repairing schools, and worker training.

Ryan revives his controversial plan that, starting in 2024 for workers born in 1959 or after, would replace traditional Medicare with a voucher-like government subsidy for people to buy health insurance on the open market. Murray proposes modest cuts to Medicare providers.

Ryan proposes slashing the Medicaid health care program for the poor and disabled by more than $700 billion over 10 years, while Murray would trim it by a negligible $10 billion. Ryan promises to eliminate $1.8 trillion in subsidies in the president’s health care law; Murray doesn’t touch them.

“There are no sacred cows,” Murray said. “We put everything we can on the table, but we do it in a responsible way that preserves, protects and strengthens the programs like Medicare and Medicaid that the American people strongly support.”

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Comments (83)

  • smokey888x2
    Posted on March 13, 2013 at 11:01pm

    It doesn’t matter, we’re over the cliff, there’s to many ‘takers’. Game over. And once they get this, they’ll come back again and again until the bucket is empty. That’s being l I b e r a l

    Report this comment

    smokey888x2  
    • RDavis49
      Posted on March 13, 2013 at 11:52pm

      I pray you’re wrong and that these people will wise up in time to put an end to this, but I’m not too hopeful either. To many takers, not enough makers. I’m very fearful that there is going to have to be a rebellion and a civil war before we can start to recover from what’s happened to America.

      Report this comment

      RDavis49  
    • RDavis49
      Posted on March 13, 2013 at 11:52pm

      I pray you’re wrong and that these people will wise up in time to put an end to this, but I’m not too hopeful either. To many takers, not enough makers. I’m very fearful that there is going to have to be a rebellion and a civil war before we can start to recover from what’s happened to America.

      Report this comment

      RDavis49  
    • Raging_Waters
      Posted on March 14, 2013 at 1:06am

      Assuming the election fraud can be contained, and Democrats lose the Senate majority, it’s a whole new ball game. My hopes for that aren’t high, but it’s a possibility.

      Also, Conservatives nationwide need to start boldly scolding Liberals–publicly and privately–to change the tides. Liberals are like childish, selfish bullies. Once they’re faced with adversity, they cower into a corner and whine.

      Civil War should be a last resort. Try winning the spiritual battle first. People have become too complacent. We need boldness these days. If all else fails, refresh the Liberty tree.

      Report this comment

      Raging_Waters  
    • fastfacts
      Posted on March 14, 2013 at 3:50am

      Did you see Rep. Alan Grayson attack the Republicans for trying to get the poor to ‘Die Quicker’ ( http://www.thedailycandidate.com/video/2013/mar/grayson_die_quickly.html), his lies and rhetoric never change though the GOP is trying to be the ‘some what’ responsible ones.

      We will never gain bipartisanship or truth with guys like him and Debbie Wasserman Schultz in power.

      Report this comment

      fastfacts  
    • mikem1969
      Posted on March 14, 2013 at 8:39am

      There are far to many moochers on the system that will just keep voting for those that give them the handouts. None of them get it and the freaking liberals and progressives that have taken over the entire democratic party and part of the republican party will only want to tax and spend. They do not want reform of any kind unless it means stealing more money from the makers and giving it to the takers.

      Report this comment

      mikem1969  
  • high school drop out
    Posted on March 13, 2013 at 10:48pm

    @CATB Problem with that is when you heat tar it gives off Co2..The Envronuts will be all over you! and the feathers will probably get you a visit from PETA

    Report this comment

    high school drop out  
  • Tigress1
    Posted on March 13, 2013 at 10:13pm

    All those dummies who voted for Obama probably still think that this $1 TRILLION in tax hikes is only going to come from the !%. It’s almost funny!

    Report this comment

    Tigress1  
  • TallTurtle
    Posted on March 13, 2013 at 9:15pm

    Time to close the shell and sleep

    Report this comment

    TallTurtle  
  • welovetheUSA
    Posted on March 13, 2013 at 8:52pm

    You democrats better come clean real quick …the game is up. American has lost its reserve currency in the world and we as a country are about to fall …all you democrats can do is lie..spend and tax…our country is going to go through something never experience before in its history, our dollar will be worth nothing, all retirement and funds will be lost and we will go down hard.….the world is looking at replacing of the US dollar as the world currency, a new unified currency is planned , IMF ..China..RUSSIA.. Arab nations..Brazil..Chilie..South Africa..India and Australia have new currency agreements that do not include the US . This will be a complete disaster for America…as it was for the United Kingdom when they went through this down grade. Our dollar is about to be worth nothing…and all the democrats can do is spend..spend..spend and print fake money worth nothing now to the world. Why is it that the republicans have not taken over the news waves and news papers to warn the American people? Meetings are going on with world leaders without inviting the US…its coming and all these high stock prices will not save anyone from this disaster. The federal reserve and politicians have destroyed America……Word is spreading…millionaires are getting out of the stocks and buying metals..bankers and bond companies are doing the same..homeland security is buying tanks and amino..is that a problem for Americans..I think so.

    Report this comment

    welovetheUSA  
  • Liberalismsamentaldisorder
    Posted on March 13, 2013 at 8:46pm

    Well here we are. The libs propose a budget that adds $4,000,000,000,000.00 to our $17,000,000,000,000.00 debt, while the repubs propose one that balances the budget in 10 years. Talk about a stark contrast. If only the press in America wasn’t utterly corrupt. Word might get out that there’s a solution to our spending crisis. Sadly, our press is more corrupt than our government.

    Report this comment

    Liberalismsamentaldisorder  
    • mtsnj
      Posted on March 13, 2013 at 9:57pm

      and the Libs will respond by saying well we tried to pass a budget but the repubes are standing in the way… They don’t care that actual and future spending needs to be scaled way back, until we get caught up. You know how responsible people are, you don’t spend your family into a hole unless you’re on drugs… its a drug to them..They need Rehab!!!

      Report this comment

      mtsnj  
    • YOURSENSEI
      Posted on March 13, 2013 at 10:03pm

      Mr or Ms LIBERALISMSAMENTALDISORDER,

      This is what you must know:

      There is a difference between the debt and the deficit, which you are either ignorant of or choose to ignore. Here’s the question you need to ask: How much does the Ryan budget add to the debt? I know. Do you?

      It is so.

      Report this comment

      YOURSENSEI  
    • termyt
      Posted on March 13, 2013 at 10:52pm

      The Ryan plan erases the deficit in 10 years, the debt in 40. That is what you ought to admit, if you were an honest teacher.

      The Dem budget will simply add with no plan to ever reduce. It is so.

      Maybe sensei is a good name for you. You certainly are as honest and decent a teacher as your typical union thug teacher in a public school.

      Report this comment

      termyt  
  • noslave
    Posted on March 13, 2013 at 8:40pm

    the dems could also demand 50 unicorns in their budget,to bust balls some more,& so republicans turn their budget down and then they could whine THOSE NASTY EVIL REPUBLICANS WONT DO ANYTHING TO COMPROMISE??they wont pass a budget they will have to live within,so they throw out insulting GIVE US EVERYTHING WE WANT OR WE’LL PISS&MOAN LIKE THE LITTLE BITCHES WE ARE??

    Report this comment

    noslave  
  • thibx
    Posted on March 13, 2013 at 8:31pm

    don’t believe a damn thing they say. they can not add 2 and 2 and come up with 4. fire them all. republicans like bohner and some other need to go. democrats are all idiots. oboma is evil.

    Report this comment

    thibx  
    • Exrepublisheep
      Posted on March 13, 2013 at 9:09pm

      And then what?

      Report this comment

      Exrepublisheep  
    • Stoic one
      Posted on March 13, 2013 at 9:53pm

      Then we put in people that know 2.6-3.8 (trillion) = generational theft. So instead they balance the budget; either over ten years or over one. less pain more pain- it is much better than the death of our country in less than ten.

      Report this comment

      Stoic one  
  • watashbuddyfriend
    Posted on March 13, 2013 at 8:24pm

    Ok, Folks, who participate in postings to TheBlaze blogs, I have not read a single comment where you have supported my ideas of bringing those 535 people in The Congress HOME, for putting us in the debt we are in!

    All I have seen out of most of the Congresspersons is to ‘Go Along, To Get Along.’

    Report this comment

    watashbuddyfriend  
    • Stelex
      Posted on March 13, 2013 at 8:29pm

      We will follow your lead, of course we want them out and I’m personally am willing to listen to how you will get it done. I’m open……..

      Report this comment

      Stelex  
    • TheBurningTruth
      Posted on March 13, 2013 at 8:51pm

      The problem is that the Blaze population is quite small compared to the Takers that are happy to put these corrupt clowns back in office. Consider that Romney had over 58 million votes but still lost. (Yes, I know Romney was a Rino, but between Barry and Romney there’s no question who was the lesser evil). The fact that the Demoncrats have addicted half the population to govt money means that we’re over the edge already.

      Report this comment

      TheBurningTruth  
    • noslave
      Posted on March 13, 2013 at 8:59pm

      i first would get rid of the senate constipater HARRY REID and his crew of communist hinderers.

      Report this comment

      noslave  
  • dmerwin
    Posted on March 13, 2013 at 8:09pm

    I cannot believe they want to add another 500 billion more spending increases each year with NO way to pay down ANY debt.

    Report this comment

    dmerwin  
    • CatB
      Posted on March 13, 2013 at 8:17pm

      Collapse the system .. new government .. with the people enslaved. But no one would believe it .. even the RINO’s still say Obama and Dems are “nice” .. I say they are EVIL!

      Report this comment

      CatB  
    • Jphelps
      Posted on March 13, 2013 at 8:37pm

      Sure they have a way……they think taxing the “rich” is going to take care of their spending problem. Oh wait a minute….they don’t think we have a spending problem they think we just ahve a revenue problem. We’re Screwed

      Report this comment

      Jphelps  
  • Stelex
    Posted on March 13, 2013 at 8:04pm

    The Government is building two army’s against the American populace, The IRS the financial army, and DHS the Gastapo. And all of us are funding it. Billions of rounds of ammo, 2700 tactical units and I can’t even find 9mm at my local Walmart or gun store. Stop the madness now. They are growing we are not and we are running out of time.

    Report this comment

    Stelex  
    • FISH_BONE
      Posted on March 13, 2013 at 8:11pm

      The third, and perhaps most terrifiying army seems to be made up entirely of unattractive women: Hillary Clinton, Debbie Wasserman Schultz, Patty Murray, Moochelle, Nancy Piglosi… need I go on?

      Report this comment

      FISH_BONE  
    • Stelex
      Posted on March 13, 2013 at 8:17pm

      Thanks…….just before bed I got that visual. You are lucky your on the right side my friend. Now where’s my JD

      Report this comment

      Stelex  
    • booger71
      Posted on March 13, 2013 at 8:27pm

      need I go on?
      ============
      No thanks, I just had supper

      Report this comment

      booger71  
  • Advection
    Posted on March 13, 2013 at 8:04pm

    They’re mad if they think their plans won’t bring down the Dollar and with it the nation.

    Report this comment

    Advection  
  • shogun459
    Posted on March 13, 2013 at 7:59pm

    SLLAAP! ( Across the face ) “HAR HAR HAR HA HA HA!”

    “How do you like is ~aMERica~! Next time maybe you won’t ask us to do our jobs! HAHAHA!” says Murray and Harry Ried

    Report this comment

    shogun459  
    • dmerwin
      Posted on March 13, 2013 at 8:07pm

      What part of broke do these jokers NOT understand? We will soon not even be able to pay the interest on the debt. Raise taxes by 1T and increase the debt another 4T =5T, or 1/2T spending hikes every year for 10 years. Really, what MORE do we need? Is this a SERIOUS proposal?

      Report this comment

      dmerwin  
  • Stelex
    Posted on March 13, 2013 at 7:57pm

    Just take a look at that picture……we all willingly hand over our money to these folks. Seriously, look long and hard at these to POS’s and ask yourselves why, am I sending my money to these folk, when you know damn well they play the system and get rich off of us. WHY???? How long you willing to be raped financially. Stop paying taxes.

    Report this comment

    Stelex  
  • NOBALONEY
    Posted on March 13, 2013 at 7:54pm

    Our next Vice President is all of sudden in the news. Remember when John Kerry went to Pakistan as Obama’s go to guy in 2011? The democrates always plan ahead. They have their 2016 ticket already. Clinton/Murray, if Obama doesn’t go for his third term. Meanwhile, the GOP establishment looks to go along for the ride. The Tea Party representative minority waste their time fighting “Operation Deep Purple” where there’s no difference between the two parties, and all that’s left is the fight over control.

    Report this comment

    NOBALONEY  
    • FISH_BONE
      Posted on March 13, 2013 at 8:05pm

      Clinton / Murray. Could you possibly think of a more homely duo? The ugly just drips off of both of them.

      Report this comment

      FISH_BONE  
  • spirited
    Posted on March 13, 2013 at 7:49pm

    Great….1 trillion for each year already served (reigned).

    >May the intervention of trasnsfats save us.

    Report this comment

    spirited  
  • cliKKer
    Posted on March 13, 2013 at 7:48pm

    The Progressive’s plan is to propose this insane budget…. notice they are “ok” with some change in Social Security and entitlements. They will get the Repubs to join in… who will think “hey we are getting something!” Then before the election Obama will demi-god and run around telling how the evil Repubs are cutting grandmas and your Social Security to give money to Rich Whitey.

    Report this comment

    cliKKer  
    • IAMMADDOG
      Posted on March 14, 2013 at 10:03am

      That’s demagogue. Don’t normally correct spelling but Obama is NOT a demi-god.

      Report this comment

      IAMMADDOG  
  • Exrepublisheep
    Posted on March 13, 2013 at 7:43pm

    sigh

    Report this comment

    Exrepublisheep  
    • M13
      Posted on March 13, 2013 at 8:38pm

      What’s the problem? These are the same people you support aren’t they?

      Report this comment

      M13  
  • NOBALONEY
    Posted on March 13, 2013 at 7:41pm

    White smoke from the capital building! We have a budget! Today was a first for many things.

    Report this comment

    NOBALONEY  
    • RJJinGadsden
      Posted on March 13, 2013 at 7:49pm

      I could not see this crowd using that privileged “white” smoke. More like rainbow smoke.

      Report this comment

      RJJinGadsden  
    • CatB
      Posted on March 13, 2013 at 7:51pm

      An insane budget .. but I guess it is something … these people are truly CRAZY! More taxes .. that is al they ever say .. more spending and more TAXES …. ugh!

      Report this comment

      CatB  
    • Darmok and Jalad at Tanagra
      Posted on March 13, 2013 at 7:58pm

      RJJ/CATB:
      This is like when you make your kids do their homework, and they are throwing a tantrum. They are just going to do it as crappy as they can, just to show you that you can’t make them do a good job. And that is what we are getting, the kids are throwing a tantrum.

      Report this comment

      Darmok and Jalad at Tanagra  
    • CatB
      Posted on March 13, 2013 at 8:21pm

      @D & J .. well when my son threw a tantrum .. he got NOTHING .. and he soon learned that throwing one would get him nowhere … time for the CONSERVATIVES (note I did not say Republicans) to put these little twits in a TIME OUT ..

      Report this comment

      CatB  
    • subic
      Posted on March 13, 2013 at 8:39pm

      It won’t pass.

      Report this comment

      subic  
  • CulperGang
    Posted on March 13, 2013 at 7:38pm

    you all think this is cure and funny with your stupid comments?

    Report this comment

    CulperGang  
    • FISH_BONE
      Posted on March 13, 2013 at 7:52pm

      On behalf of all of us, I sincerely apologize. We’ll try to be more serious from now on.

      Report this comment

      FISH_BONE  
    • Fubared
      Posted on March 13, 2013 at 8:02pm

      I used to love The Cure, man. Never thought they were funny though.
      http://www.youtube.com/watch?v=RLye2L3xN-o

      Report this comment

      Fubared  
    • Stoic one
      Posted on March 13, 2013 at 8:04pm

      You are not from The USA are you?
      If you are not ( as i suspect) Tell us what life is like where you are & what type of government you live under.

      Report this comment

      Stoic one  
    • termyt
      Posted on March 13, 2013 at 8:29pm

      The Democrats obviously aren’t taking this seriously, why should we?

      Report this comment

      termyt  
    • Stoic one
      Posted on March 13, 2013 at 9:42pm

      CULPERGANG

      My questions were for you…….I am just curious – that is all, you sound like you have experienced what it appears we are headed for.

      Report this comment

      Stoic one  
  • CulperGang
    Posted on March 13, 2013 at 7:36pm

    http://www.reuters.com/article/2013/03/13/usa-banks-spying-idINDEE92C0EH20130313

    Andif you think you are going to “hide” some $$$$ barry already has plans for that too.
    YOU FUND THIS ADMINISTRATIONS administering…….and as longas you do….the liberals are going to run you and your family into the ground.

    Report this comment

    CulperGang  
    • Stelex
      Posted on March 13, 2013 at 7:54pm

      Whats your problem mannnnnnnn, you got a problem ******* away money on worthless programs and huge bloated Gubment………….Stop paying your taxes. Its that simple When you do that then you may slam the rest.

      Report this comment

      Stelex  
  • UNALIEN
    Posted on March 13, 2013 at 7:35pm

    nice job comrades

    Report this comment

    UNALIEN  
  • skippy6
    Posted on March 13, 2013 at 7:34pm

    It’s all about spend spend spend…..It doesn’t matter because it’s going to collapse anyway…Just try to prepare yourself for the inevitable…..

    Report this comment

    skippy6  
  • RJJinGadsden
    Posted on March 13, 2013 at 7:28pm

    LOL. Yeah, I have to laugh to keep from crying. But, I should never have expected anything to be different from this.

    Report this comment

    RJJinGadsden  
    • FISH_BONE
      Posted on March 13, 2013 at 7:32pm

      Will we still get to find out why lesbians are so fat?

      Report this comment

      FISH_BONE  
    • RJJinGadsden
      Posted on March 13, 2013 at 7:48pm

      FISH_BONE, LOL, and maybe why their counterparts remain so thin. Guess they didn’t see Floyd Lee Corkins II. That was my first thought when I heard that discussed this morning.

      Report this comment

      RJJinGadsden  
    • FISH_BONE
      Posted on March 13, 2013 at 7:56pm

      After we find out why rug munchers wear “husky” sized jeans, perhaps we can look into why liberal women are, shall we say, less than aesthetically pleasing to the eye. Did you catch the picture of Patty Murray up top? Yikes!

      Report this comment

      FISH_BONE  
    • RJJinGadsden
      Posted on March 13, 2013 at 8:03pm

      FISH_BONE, Yeah I did and still feel like I have Tabasco Sauce in my eyes too.

      Report this comment

      RJJinGadsden  
    • Ben__Franklin
      Posted on March 13, 2013 at 8:26pm

      That’s a woman? I thought that was Harry Reid’s brother in drag.

      Report this comment

      Ben__Franklin  
    • RJJinGadsden
      Posted on March 13, 2013 at 8:30pm

      BEN, that could explain a lot after all.

      Report this comment

      RJJinGadsden  
    • subic
      Posted on March 13, 2013 at 8:31pm

      @ FISHBONE, ya, another nasty liberal skank. just the brief look at her gives me the heebie jeebees.

      Report this comment

      subic  
  • Fubared
    Posted on March 13, 2013 at 7:27pm

    And they get “paid” for this. Hahahahahaha.

    Report this comment

    Fubared  

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