UNHAPPY DAYS ARE HERE AGAIN – AT 9:10 A.M. ET: The Democrats are plotting. Hide something under your mattress, if only for symbolic value. From The Hill:
Democrats say they want to raise as much as $1 trillion in new revenues through tax reform later this year to balance Republican demands to slash mandatory spending.
Democratic leaders have had little time to craft a new position for their party since passing a tax deal Tuesday that will raise $620 billion in revenue over the next ten years.
The emerging consensus, however, is that the next installment of deficit reduction should reach $2 trillion and about half of it should come from higher taxes.
This sets up tax reform as one of the biggest fights of the 113th Congress, which began on Thursday.
Republicans say tax reform should be revenue neutral. Additional revenues collected by eliminating or curbing tax breaks and deductions should be used to lower rates.
Senate Republican Leader Mitch McConnell (R-Ky.) has dismissed the possibility of negotiating additional tax increases.
“I'm in favor of doing tax reform but I think tax reform ought to be revenue neutral as it was back during the Reagan years. We've resolved this issue, look we don't have this problem because we tax too little. We have it because we spend way, way too much,” McConnell said Sunday on NBC’s “Meet the Press.”
Liberal and centrist Democrats say revenues collected through tax reform should go to deficit reduction.
“We’ve done about $2 trillion. I thought $4 trillion is the goal we should reach. I think we’re about half way there. We need another $2 trillion,” said Sen. Ben Cardin (D-Md.), a member of the Senate Finance Committee, which has jurisdiction over tax reform.
He said the $917 billion cut under the Budget Control Act passed in the summer of 2011 combined with $620 billion in revenues from Tuesday’s tax deal and interest savings adds up to about $2 trillion.
COMMENT: Watch these boys carefully. Watch how "enhanced revenues" suddenly go, not to reducing the debt, but to Democratic social programs that never seem to accomplish much. Watch how the same crisis we have this year is back again next year.
And remember, it's all for the children. You don't want to take anything away from the children, do you?
January 7, 2013