House Democrats unveil budget matching Obama’s tax increases

Author: associated press

WASHINGTON (AP) – House Democrats Monday unveiled a $3.7 trillion budget plan for next year that mirrors President Barack Obama’s call for $1.8 trillion in tax increases on wealthier people and corporations over the coming decade but would add almost $6 trillion to the national debt over that time.

The plan by Maryland Democrat Chris Van Hollen rejects deep cuts proposed by Republicans to social safety net programs and would keep the health care law intact.

The plan calls for a wave of new spending for infrastructure like roads and bridges and additional funding for education and medical research. It would make modest curbs on the rapid growth of the popular Medicare program. As a result, deficits would grow from a projected $378 billion next year to $717 billion in 2025.

The Democratic plan has no chance of being adopted during House debate this week but draws a contrast between the competing fiscal priorities of the two parties. The GOP measure manages to project balance but promises unrealistic cuts to domestic programs like transportation to do so. It also would leave in place revenues consistent with keeping more than $1 trillion in tax increases from so-called “Obamacare” in place.

The House will debate several different budget plans this week.

GOP leaders say they will amend the budget to add $38 billion more in funding for overseas military and diplomatic accounts to the $58 billion requested by Obama. They will have to overcome opposition from deficit hawks who sought to hold the line against new spending that would increase next year’s projected deficit.

In the Senate, Lindsey Graham, R-S.C. won approval of a plan to add $38 billion in additional war funding as a way to try to get around binding budget caps on the Pentagon. But the measure also contains language than leaves the money vulnerable to a procedural challenge that would require a 60-vote supermajority of the Senate’s 100 members to waive. Democrats argue that means Graham’s move amounts to a pyrrhic victory on defense spending.

Meanwhile, a group of GOP conservatives released a budget plan with even sharper cuts to domestic programs in hopes of balancing the budget within six years instead of the nine years envisioned by the measure approved by the Budget Committee last week.

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