Senate conservatives split over deficit reduction strategy

The Hill ^ | 2/26/11 | Alexander Bolton

[FTJM]

Senate conservatives are split over a strategy for reducing federal spending over the long-term future, an issue they plan to force when Democrats attempt to increase the national debt ceiling later this year.

Some are concerned that a deficit reduction package being negotiated by Sens. Tom Coburn (R-Okla.) and Mike Crapo (R-Idaho), two of the chamber’s leading conservatives, could include hundreds of billions of dollars worth of tax hikes.

Coburn and Crapo, members of President Obama’s fiscal commission, voted last year for a proposal to cut spending, reform entitlements and overhaul the tax code. The fiscal commission’s proposed tax reforms would raise an estimated $785 billion between 2012 and 2020.

Coburn and Crapo are negotiating with Senate Budget Committee Chairman Kent Conrad (D-N.D.) and Democratic Whip Dick Durbin (Ill.) to craft a deficit reduction package that would follow up on the guidelines set out by the fiscal commission.

Some conservatives in the Senate worry that Coburn, Crapo, and a third negotiator, Sen. Saxby Chambliss (R-Ga.), might endorse tax reforms that would increase the total amount the federal government collects in taxes.

[icwhatudo]

Little by little Coburn seems to be slipping into that weird place inhabited by Newt/Bob Barr/Lyndsy Graham.

[Cheetahcat]

They are NOT conservatives then,But worthless Politicians.

[KansasGirl]

[Some conservatives in the Senate worry that Coburn, Crapo, and a third negotiator, Sen. Saxby Chambliss (R-Ga.), might endorse tax reforms that would increase the total amount the federal government collects in taxes.]

??? As long as it is done with tax rate deductions and economic growth, I don’t see the problem. Tax hikes will not result in an increase in the “total amount the federal government collects in taxes.”

[A Strict Constructionist]

“Some conservatives in the Senate worry that Coburn, Crapo, and a third negotiator, Sen. Saxby Chambliss (R-Ga.), might endorse tax reforms that would increase the total amount the federal government collects in taxes.”

If they do, they should immediately be encouraged to commit Seppuku.

[bill1952]

Tax hikes will not result in an increase in the “total amount the federal government collects in taxes.”

You missed it entirely.
What it WILL do is increase taxes & most importantly, the projected revenue in the budget.

Of course the increased taxes will not increase revenue, but they will be collected as...increased taxes.

Smoke, mirrors and statistics, all to enable another tax increase.

[stockpirate]

“Sens. Tom Coburn (R-Okla.) and Mike Crapo (R-Idaho), two of the chamber’s leading conservatives.”

What a total load of crap, they are NOT conservatives, they are socialists, not RINO’s, socialists.

[Paladin2]

What are the opinions of Rand Paul and Jim DeMint?

[Qbert]

"Coburn wrote that “everything has to be on the table” in the budget debate..."

[KansasGirl]

Thanks for pointing that out. You are correct, of course.

Smoke and mirrors that will allow them to say their budget plan will decrease future deficits by $$$. Of course, those decreases will never materialize.

I can already, senior Republicans on the national level are going to be a big problem. They all need to be replaced.

[MotherRedDog]

Since this is based on conjecture (might do something), then I’ll hold my breath. It’s only Feb, so I’m still not ready to give up. Having said that, I am ready to work against ANYONE who continues to sink us further into debt while stepping on the throat of the taxpayer.

[hondact200]

Coburn Crapo and Chambliss (rinos) negotiating with Conrad and Durbin (Democrat Socialists). Hey comrade lets talk borscht, caviar and vodka. There is no compromise more smoke and mirrors. get ready for RED Dawn ( 1984 movie Soviet invasion) coming to your neighborhood soon.

[FrankR]

[Pollster1]

We're already at "Point B". How big a tax increase do we really
want to try with the economy suffering due to excessive government
spending?

[Oldpuppymax]

If Coburn and Crapo are pushing tax hikes, they are BY DEFINITION NOT 2 of the senates leading conservatives!!

[MontaniSemperLiberi]

No, we are not at point B.

We are at Point A.

Revenues this year are expected to be about 15% of GDP. Typically it sits at 18.5% of GDP. The best way to eliminate the deficit is by cutting spending. Yet there is room to increase taxes. By increasing taxes to 18.5% of GDP , it would bring in about $490billion, going 1/3 of the way to eliminating the deficit. The other 2/3rds is going to have to come from cuts.

[Pollster1]

Revenues this year are expected to be about 15% of GDP. Typically it sits at 18.5% of GDP. The best way to eliminate the deficit is by cutting spending. Yet there is room to increase taxes. By increasing taxes to 18.5% of GDP , it would bring in about $490billion, going 1/3 of the way to eliminating the deficit. The other 2/3rds is going to have to come from cuts.

I disagree. The tax rates (combined with fear of tax increases and lawless government seizures) are high enough that they are cutting into revenue. We can cut rates to establish trust and increase the incentive to innovate, and that will boost revenue.

[MontaniSemperLiberi]

Do you have one shred of evidence for your belief? I think one can successfully argue that corporate income taxes are too high. I don’t think a rational argument can be made that taxes overall are too high, especially given the fact that at this deficit level we are three to six years away from default.