Posted on 05/13/2008 8:50:44 AM PDT by Sub-Driver
Democrats' Budget Agreement Assumes Bush Tax Cuts Will Expire By Andrew Taylor, Associated Press CNSNews.com May 13, 2008
Washington (AP) - Democrats controlling Congress are leaving grim decisions on automatic tax increases to the next president and the newly elected Congress under a freshly negotiated House-Senate blueprint for the upcoming budget year.
The fiscal 2009 budget plan worked out in private talks between House Budget Committee Chairman John Spratt Jr., D-S.C., and his Senate counterpart, Kent Conrad, D-N.D., awards an approximately 4 percent increase on average to nondefense Cabinet budgets passed by Congress each year. But it makes no effort to rein in the rapidly rising cost of federal benefit programs such as Medicare.
Conrad told reporters he anticipates the nonbinding budget plan would pass both House and Senate by the end of next week. He declined to reveal key details.
Tom Kahn, Spratt's chief of staff, confirmed Tuesday that an agreement had been largely reached, but said a few details remain to be ironed out. He would not comment further, though many parameters of the plan are known.
On taxes, the measure assumes that many of President Bush's tax cuts expire as scheduled at the end of 2010, and relies on the resulting influx of tax revenues to balance the budget.
(Excerpt) Read more at cnsnews.com ...
Idiots. The tax rate cuts produced economic growth and increased revenues. The increases won't produce an influx of tax revenue because growth will be stifled and production and income producing assets moved to avoid the taxes.
This agreement was reached in secrecy, and they refuse to release datails? I swear that if a Republican had acted similarly the unwashed masses of media would storm the capital.
The plan is to do nothing and hope that it works out. Any action is better than inaction, and hope is not a course of action.
The resulting tax rate increases (like the interest rate increases that destroyed the housing boom) will leave the Democrats open to a Voting population who will have just been educated on the math of recession causes! Or at least that’s what we can hope! Then perhaps November can provide and education back to the Democrats! ...and payback will be sweet. Let’s see if McCain can jump on this train as fast as he jumped the greenie shark!
The coming recession that will be a direct result of the tax increase serves the Democrats well. If the economy does well, then the Dems will say we can afford more spending on the social programs, if the economy is poor, then they will say we need to help those that are hurting. Either way, the Dems have their message prepared in advance for more spending. Between this, illegal immigration and dependence on foreign energy, we have the Dem recipe to keep America weak and in the Dems power.
CSpan2 had a Democrat who had a chart showing absolute catastrophe for the COST OF TAX CUTS IF ALLOWED TO CONTINUE!
Tax CUTS do not cost money to anyone except the FAT GOVERNMENT OFFICIALS.
And of course, if they get a Dem in the White House, that will definitely happen. In fact, taxes will likely go up higher than they were before.
I always check out the US Treasury website for monthly and yearly statements. To be precise, revenues for the year 2003 were about $1.7 trillion and then jumped to $2.5 trillion by 2006 dues to the tax cuts. That's about a 47% revenue increase.
The Democrats will destroy that. And from the U.S Treasury's website yearly statements the Clinton years had stagnant revenue growth.
I used to think they were too dense to get it, but not anymore. They understand this fact (how could they not, it's been proven time and time again!) but choose to ignore it. Why? Because the power to tax is the power to control. The power to extend special favors. The power to crush your enemies and pander to your friends. In short, it is the total basis of democrat politics. Revenue is irrelevant.
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