Senate Dem budget includes nearly $1 trillion in new taxes - The Hill's On The Money
If I had my way Congress and the President would pass two big bills as they relate to the economy and fiscal policy this year. And it would start with House Republicans passing their own budget plan with House Democrats presenting and alternative and getting it voted on. And then Senate Democrats passing their own budget plan with Senate Republicans probably using the House Republican plan as their. Alternative and getting a vote on it and then President Obama presenting his plan as well so we could see where both sides are in Congress. And where the President is as far as getting to deficit reduction and what do I mean by that. That we get the debt to a point that its not growing faster then the economy and that the economy is larger then the debt. With the deficit falling every year which would free up capitol for the Federal Government to invest in other areas. But also free up capitol for the private sector to borrow and invest because now the United States Government is not competing with them for such a. Huge chunk of the resources of the economy.
And then Congress would have what's called a conference committee, if you are familiar with the so called super committee. Well thats kinda what a Congressional conference committee is, between the House and Senate and when it comes to the Federal budget. Where members of both the House and Senate budget committees come together to work out what the final budget plan will be thats passed by. Congress but because of how divided both sides are right now and the fact we have a divided Congress with a Republican House and a Democratic Senate. The White House would probably have to be involved in this meeting and the only way something gets passed. Is if both sides give, Republicans are going to have to give when it comes to tax reform and Democrats are going to have to give when it. Comes to entitlements, things like the home mortgage deduction when it comes to expensive homes and for millionaires. And the tax credit that encourages jobs to be shipped oversees.
Democrats are going to have to give when it comes to how Medicare and Medicaid compensate doctors and hospitals. And taxing Social Security for wealthy people who receive it, as well early Social Security income for wealthy people once they reach sixty two. We could even live with the sequester as long as its not a sequester and that Congress and the President work out how exactly those cuts are made and. Target them instead and let defense use as an example have input in where to find an additional forty billion dollars in savings. This scenario is probably still a long shot but Congress is closer now then perhaps even in the summer of 2011 of passing a comprehensive deficit reduction package when they. Almost reached an agreement on things like tax reform and entitlements where there seems to be movement in those two areas.
If Democrats and Republicans reach an agreement on tax and entitlement reform and replace the sequester. Then they could start talking about economic recovery and doing things to move the economy forward faster. If they get an agreement on tax reform they could tell American business's that the money we are taking back from you for sending jobs oversees. You can get that money back by investing that money in the United States and hiring workers in this country. And you can even deduct from your taxes the costs of expanding your operations in this country. New offices, factories, stores, equipment and so fourth and you combine that with an infrastructure plan of around 1T$ over 5-10 years and that we pay. For this entire package and start creating jobs and hiring people so we have more workers and more people with more money to spend in this country.
As a Democrat of course I prefer the Senate Democratic approach of spending cuts and tax reform. To get to deficit reduction but to get tax reform, entitlement reform is going to have to be on the table. For one because it needs to be done because we have 100B$ a year alone in savings that we should be. Making in Medicare and Medicaid alone when it comes to how they compensate hospitals and doctors. Thats money we shouldn't be spending and two it has to be done to get Republicans to agree to a comprehensive approach.