Both parties have put up their own respective budget deals, each one forming a theme throughout. The Democrat’s want lots of taxes, and the Republicans want lots of spending cuts. In addition to their spending cuts, the Republicans close several loopholes and reform the tax code throughout. The Democrats, well, they just raise the taxes. In this post, I’ll be looking at each plan, and the history of the plans. I believe that John Boehner’s plan is superior, although I would support the addition of a clause that would require addition entitlement reform talks to begin at a set date, with forced cuts if a deal isn’t reached.
John Boehner’s plan offers $800 Million in new revenue, all through non-tax increased revenue. There will be the systematic closing of loopholes and reform and tightening in the tax code, something many Democrats have told me they would support. The Republicans would support this because this isn’t increasing taxes. His plan also includes $1.4 Trillion in savings through reform to the health care programs, $300 billion in cuts to mandatory programs, $200 billion in adjustments to the method the consumer price index is used by the federal government to set salaries and benefits, and $300 billion in further discretionary spending cuts.
The Democrats’ plan calls for $1.6 Trillion in tax increases, with smaller spending cuts, of which would be extremely inconsequential to the long term goal of deficit reduction. This is nearly identical to President Obama’s budgets, of which have never even had a single Democrat vote for. Let’s examine those voting records:
99-0, against the President’s budget
97-0, against the President’s budget
414-0, against the President’s budget
If the President cannot even secure confidence within his own party that his budget will work, then I can guarantee that the Democrats’ budget plans will not pass. The Republican plans have a modest chance at passage, based on compromise with closing the tax loopholes. The Republicans aught to agree to minimal tax increases of about $200 Billion, in order to gain some revenue (but not enough to negatively impact the economy), and enough to secure the Democrat votes.
The most important thing with the passage of any budget would be an agreement that, once it passes, talks on full-scale entitlement reform take place in the future, as we simply must reform this 80% chunk of our budget. If talks do not result in a deal, massive forced cuts must take place to the entitlement programs, and massive tax increases must occur. This would force the Republicans and the Democrats to reach a deal for the entitlements.
I hope a deal is made. If not, we’ll deal with going over the fiscal cliff, which will absolutely destroy all economic progress made in the past decade.
What do you support, and what would you want? Say so below in the comments.