Democrats reiterate support for top-tier tax increases as deficit reduction debate heats up

Sen. Al Franken
REUTERS/Eric Miller
Sen. Al Franken
Sen. Kent Conrad
REUTERS/Jonathan Ernst
Sen. Kent Conrad

Franken and other Democrats have an opportunity to support such a plan immediately. Senate Budget Committee Chairman Kent Conrad introduced a budget proposal Wednesday that would relay on equal parts spending cuts and tax increases to reduce the federal deficit by about $4 trillion over the next 10 years. To contrast, President Barack Obama’s deficit reduction plan achieves similar savings but relies on three-fourths spending cuts.

Rep. Eric Cantor
REUTERS/Larry Downing
Rep. Eric Cantor

President Obama has said ending such tax loopholes should contribute to such a plan, which must pass before Aug. 2. Cantor indicated that his could support some such measures, but with the caveat that “any discussion about loopholes must be accompanied by offsetting tax cuts. That’s all. We are not for increasing revenues.”

Speaking at the same press conference as Franken, Michigan Sen. Debbie Stabenow said turning the money around and using it for reducing tax levels is “not something we can afford anymore without evaluating every single one of those spending measures.”

Congressional leaders will meet with Obama at the White House today to continue debt limit talks.

According to the Washington Post, Obama will propose big reductions in Medicare spending and offer to tackle the rising cost of Social Security in exchange for GOP support for new revenues.

Comments (4)

  1. Submitted by Rod Loper on 07/07/2011 - 01:21 pm.

    So Obama will put Social Security and Medicare on the table so the republicans won’t wreck the economy. The terrorists are winning.

  2. Submitted by Rachel Kahler on 07/07/2011 - 01:25 pm.

    “…though whether the savings from such a move goes toward tax breaks or deficit reduction remains a significant sticking point.”

    Why? Put it toward the deficit. If we can’t raise the debt cap, we have to get rid of deficits.

  3. Submitted by Ron Gotzman on 07/08/2011 - 09:02 am.

    Rod, 9.2% unemployment and the GOP is wrecking the economy?

    Maybe the Obama “summer of recovery” will happen next year?

    Calling the GOP “terrorists” shows your desperation in defending the Obama economy.

    He failed! Hopefully “change” will take place in 2012!

  4. Submitted by Rod Loper on 07/11/2011 - 08:04 am.

    Holding the economy hostage is terrorism.

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