Senate Democrats Seek $1.3 Trillion In New Tax Hikes & $300 Billion In New Stimulus Spending, Instead of Serious Spending Cut Proposals

In August, Congress created the bipartisan Joint Select Committee on Deficit Reduction, otherwise known as the “Supercommittee,” with a mandate of trimming government borrowing by at least $1.2 trillion over the next 10 years.

Since that time, liberal former DNC Chairman Tim Kaine has repeatedly stated that the committee should take a “balanced approach” in “restoring fiscal responsibility.”  But over the last 24 hours, Virginians have started to get a better idea of what, exactly, Kaine and his fellow liberal Washington Democrats meant by their rhetoric…

Late yesterday, Senate Democrats leaked their current proposal to numerous media outlets, and its highlights include $1.3 trillion in new tax hikes, as well as upwards of $300 billion in new “stimulus” spending sought by Kaine’s former boss, President Obama.

“It’s a remarkable commentary on the Democrats’ misplaced priorities and addiction to spending that they would propose massive tax hikes and even more government spending, instead of making a serious effort to pay down our almost $15 trillion debt.  We look forward to hearing from former DNC Chairman Kaine himself on his party’s proposal,” said National Republican Senatorial Committee (NRSC) spokesman Chris Bond.

BACKGROUND ON SENATE DEMOCRATS’ “DEFICIT REDUCTION PROPOSAL…..

• Democrats suggested Wednesday that too much has already been cut from non-defense spending to come up with $1.2 trillion in cuts over the next 10 years, as sources offered a few details about a Democratic proposal to collect $1.3 trillion via tax hikes, stimulus spending and benefits cuts. (Fox News, “Democrats Balk at Non-Defense Spending Cuts, Float Alternative Proposal to Super Committee,” 10/26/2011)

• In a private meeting of the deficit panel Tuesday, Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, presented a proposal backed by a majority of Democrats on the panel that includes more than a trillion dollars in tax increases. The revenue would partially cover stimulus spending for the economy, aides said.  More than 50 percent of the deficit reduction in the plan would come from tax increases, one source said. (The Hill, “Supercommittee Dems push for stimulus to be part of deficit deal,” 10/26/2011)

• According to congressional sources, the plan includes a roughly equal mix of spending cuts and revenue increases; between $200 billion and $300 billion in new economic stimulus spending that would be paid for with lower interest payments from reducing deficits. (Reuters, “US Democrats seek up to $3 trln in budget savings,” 10/26/2011)

• Congressional Democrats are urging the debt-reduction supercommittee to pursue a far-reaching agreement to slice $3 trillion from the federal budget over the next decade through significant cuts to federal health programs, including Medicare, and as much as $1.3 trillion in new taxes. (Washington Post, “Congressional Democrats offer $3 trillion debt deal,” 10/26/2011)

• Aides said Democrats also had included new spending measures aimed at boosting job-creation in their plan, and proposed using some of the savings they had identified to offset the budgetary cost of these measures. (Wall Street Journal, “Democrats’ Deficit Plan Rejected by GOP,” 10/26/2011)

• Aides confirmed reports that Baucus also pressed members of the super committee to approve the president’s request for as much as $300 billion in new stimulus, another idea GOP members of the exclusive panel have strongly resisted. (ABC News, “Details of Dem Proposal Leak Out of Super Committee,” GOP Silent on Next Move, 10/26/2011)

• What Democrats are doing is playing the exact same game as President Obama played with House Speaker John Boehner, R-Ohio, during the debt limit talks, when he made an offer Boehner couldn’t accept, and then leaked it to the press. In both cases, the point is to feign a willingness to offer cuts to entitlements, and then impose unacceptable conditions on Republicans in attempt to paint them as being intransigent. (Washington Examiner, “Super cmte” Dems propose tax hikes, more stimulus, 10/26/2011)

• Of course, what else would you expect from a group of lawmakers that hasn’t passed an actual budget in nearly three years? (National Review Online, “Senate Dems Propose Massive Tax Hike, More Stimulus ,” 10/26/2011)