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Analysis says Reidís budget plan contains gimmicks that could result in tax increases
Daily Caller ^ | July 30, 2011 | Amanda Carey

Posted on 07/30/2011 7:20:45 AM PDT by bobsunshine

Senate Majority Leader Harry Reid has said that his debt ceiling bill, in a bow to Republicans, includes no tax increases. But does it really?

An analysis from the Republican Senate Budget Committee staff shows that Reid’s bill includes gimmicks that, if passed, would account for approximately $3.8 trillion in revenue — or tax increases.

The maneuvering is complicated; but when explained properly, it becomes clear.

Reid’s proposal includes a provision that “deems” budget resolutions for fiscal years 2012 and 2013, but Senate Democrats have not yet produced a 2012 budget proposal, much less one for 2013.

Within those anticipated budget resolutions lie the tax increases, according to the analysis, and here is where it gets tricky.

When the Congressional Budget Office scores a proposal, it uses either current policy or current law as its baseline. Reid’s bill is based on current law, which assumes certain tax breaks will expire according to pre-determined scheduled. That is a big deal.

The 2001–2003 Bush tax cuts are set to expire at the end of 2012. And some business tax breaks, “death tax” cuts, and the patch for the Alternative Minimum Tax expire at the end of 2011. Reid’s proposal assumes that Congress will not act to renew or extend those expiring tax breaks.

(Excerpt) Read more at dailycaller.com ...


TOPICS:
KEYWORDS: debt; debtceiling; deficit; democrats; durbin; online; taxes
SMOKE AND MIRRORS - Democrats mode of operation
1 posted on 07/30/2011 7:20:49 AM PDT by bobsunshine
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To: bobsunshine

If a democrat’s lips are moving they are lying...start with that principle and you will never go wrong.

My guess is they intend to use the long term debt increase, through the 2012 fiscal year as a form of budget i.e. if the debt can be increased by this amount, that is what the budget should accomodate.

Weed, er Reid, is nothing but a lying piece of crap and his immediate underling, Skeemer er Shumer, is identical and equally smelly.


2 posted on 07/30/2011 7:25:57 AM PDT by Mouton (Voting is an opiate of the electorate. Nothing changes no matter who wins..)
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To: bobsunshine
"SMOKE AND MIRRORS - Democrats mode of operation"

I would amend this to read DECEIT and TREACHERY.

3 posted on 07/30/2011 7:26:16 AM PDT by Truth29
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To: bobsunshine
Two words:

FAIR TAX.

Let's be "fair" about it. Make EVERYBODY pay their "fair share" including those that pay no income tax at all.

If it were to happen (and I don't think it ever will) our economy would go nuts. Businesses could actually do business instead of worrying about which violation of the tax code would snare them.

4 posted on 07/30/2011 7:30:33 AM PDT by unixfox (Abolish Slavery, Repeal The 16th Amendment!)
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To: bobsunshine

Heard one of the components of cost containment, over the next 10 years, was a quantification of how many of millions of dollars result from the reduction of welfare payments, Section 8 Housing, Single Mother Payments, night basketball and other Tax Credits, that would have to be paid but for to DemoCrap sanctioned abortions./s


5 posted on 07/30/2011 7:31:08 AM PDT by BilLies (330,000 northern whites died between 1861-65 so that Obama could use Affirmative Action.)
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To: bobsunshine

What else did anyone expect? Lies, dishonesty, obfuscation is the coin of the Democrat philosophy


6 posted on 07/30/2011 7:31:08 AM PDT by yldstrk (My heroes have always been cowboys)
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To: bobsunshine

All of this for $7 billion in actual cuts.

There has GOT to be a special ring of the Inferno for these politicians (as opposed to your garden variety politician). They steal, they lie and they have betrayed their country.


7 posted on 07/30/2011 7:31:49 AM PDT by NTHockey (Rules of engagement #1: Take no prisoners)
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To: bobsunshine
We need an FBI investigation. when the Demoncraps controlled both houses and the presidency they didn't offer a budget resloution.

Has Wubya converted the Hurricane portion of the weather control machine to induce a mind meld.

Ancillary evicence points to this activity. Few hurricanes and visciously hot weather assault on us.

Al Gorge! Where are you?

8 posted on 07/30/2011 7:32:12 AM PDT by Young Werther ("Quae cum ita sunt" Since these things are so!)
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To: bobsunshine
Horse/Carriage, Bread/Butter, Reid/Sleaze.
9 posted on 07/30/2011 7:36:13 AM PDT by JPG (Yes she can!)
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To: bobsunshine

Vote no or lose. Period. Time to engage the thieves and win this war of criminal extortion...


10 posted on 07/30/2011 7:36:25 AM PDT by Shady (Capitalism works for men who do. Socialism works for men who don’t The numbers do not lie.)
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To: bobsunshine

Who needs to analyze the “plan” (that nobody has seen) to know that it contains gimmicks for tax increases? Scorpions don’t change - they need to be stepped on until you feel and hear them crunch...


11 posted on 07/30/2011 7:41:19 AM PDT by trebb ("If a man will not work, he should not eat" From 2 Thes 3)
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To: bobsunshine

But, it is balanced. They will spend more money, and take more money. See? Balanced! That was easy!


12 posted on 07/30/2011 7:42:49 AM PDT by SERKIT ("Blazing Saddles" explains it all......)
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To: bobsunshine

Barney Frank is on Cavuto (this am FOX Business block, taped yesterday) trying to explain if there is a Federal statue to require investment services to hold only AAA investments, a real ‘who’s on first’ moment as Cavuto cannot get him to simplify his point

Cavuto still fears everyone will drop their securities if they are not AAA

Another Cavuto guest, Wis Gov Scott Walker says #1 issue is whether they get the debt under control


13 posted on 07/30/2011 7:47:04 AM PDT by Son House (The Economic Boom Heard Around The World => TEA Party 2012)
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To: Shady

At this point it really is that simple—vote no, end of story. Get out there and show the Republican attempts to accomodate the decaying Reid ans Pelosi and the boy president. Make them appear as they are—tax and spend libs, whatever they`re called now, in a time when we simply don`t have anymore to give.


14 posted on 07/30/2011 7:47:28 AM PDT by Darkwolf377 (``Stupidity is also a gift of God, but one mustn't misuse it``-Pope John Paul II)
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To: bobsunshine
Let the R Congressman send a letter to Reid, saying he's wasting his time, with ALL Republicans signing it to "vote against", just like the strong-arm memo the D's in the Senate sent to Boehner.

Shove it up their asses!

15 posted on 07/30/2011 7:54:17 AM PDT by traditional1 ("Don't gotsta worry 'bout no mo'gage, don't gotsta worry 'bout no gas; Obama gonna take care o' me!)
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To: bobsunshine
Reid is just a pathetic little Troll Communist that is trying to make the Republicans look bad..His president and the rest of the Troll will be out in 2012..All of their spin will not fool anyone..Since their base consist of mainly uneducated welfare people that do noting but sit on their lazy ass and collect money from us then they have lost..When they meet their maker the devil they will get what they all deserved here on earth..It is a sin to lie Harry and a sin to steal..
16 posted on 07/30/2011 7:55:38 AM PDT by PLD
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To: Son House

Barney Frank is an evil man


17 posted on 07/30/2011 7:55:52 AM PDT by yldstrk (My heroes have always been cowboys)
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To: Mouton

Note the reference to the ‘baseline’...this refers to the ‘baseline budgeting’ scam run by the federal government and is the primary source of the upward curve of federal spending. The few ‘cuts’ we ever get are nothing more than reductions in the future growth of spending. Imagine your personal budget is 50,000 for the current year. Under federal budgeting your projected budget for the same services next year would be 53,500 (an assumed 7% annual growth). Run this run this out over the same ten year period the CBO uses and you wind up automatically spending about 92,000 in the final year for the same services and products you buy now. Of course Congress will add additional increases to account for inflation and flavor of the month projects to their already assumed baselne. This also enables the Left to demonize those who propose spending cuts even though such cuts are always cuts in growth of spending; never actual cuts from a previous year. Unless the electorate soon stops this crooked game that is at the foundation of our spending problems the whole thing will collapse under its own weight.


18 posted on 07/30/2011 7:58:46 AM PDT by dogcaller
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To: bobsunshine

“The maneuvering is complicated; but when explained properly, it becomes clear. “

And someone from the conservative side needs to be holding pressers every other day after reid and the poser in chief hold theirs to make those points of deception ABSOLUTELY clear in no uncertain terms. The democrats and obama want only a blank check and nothing less.


19 posted on 07/30/2011 7:58:46 AM PDT by freeangel ( (free speech is only good until someone else doesn't like it)
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To: bobsunshine

If only the rest of them realize that Reid is dedicated to not only shoving America into the toilet,l but flushing it down the drain! Vote NO on Reid! He is doing what the President wants him to do! I can’t understand how Reid got re elected. As I’ve said before, as long as Government counts the votes with their tricky little computers, our votes do not matter. I am sure contained in his back of tricks is negating the deduction for interest on one’s home, or business expenses (such as corporate jets!)which would make things very tough on home owners, and increase the unemployment number exponentially.


20 posted on 07/30/2011 8:07:49 AM PDT by Paperdoll (NO MORE BUSHS!)
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To: bobsunshine
Frankly, maybe the GOP should stop fighting so hard to save the hides of obama and reid

I am prepared to face higher tax bills, which will stop virtually all of my discretionary spending and probably also cut into essentials. Life will change, Maybe that is OK if it proves once and for all, certain economic realities

It will be a grim satisfaction to watch these progressive fools totally ruin the economy.

Maybe Boehner should have faced down obama and invited him to to abolish the Bush tax cuts. Now. Just do it. Separate addendum, to be signed if the President chooses to do it.
The “Obama Fair Tax Amendment”

I am so sick of the democrats campaigning against the “Bush Tax cuts for the rich”

I challenge the left wing of the democrat party to just stay in control of the US economy. Do it your way. Drop the “Bush Tax rates” and go back to the tax tables for 2000.

Please progressives, Raise taxes. Just do it.

Do it NOW, while unemployment is over 9% and the economy is “growing” at less than 1% a quarter.

RAISE TAXES. If that's the progressive solution, then let's just try it, shall we? GOP, stand back. Let obama take full credit for the outcome. There is not a more deserving man in the uSA, for what will be the result of higher taxes in a recession/depression

21 posted on 07/30/2011 8:35:14 AM PDT by silverleaf (All that is necessary for evil to succeed, is that good men do nothing)
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To: bobsunshine

Reid is an out right liar and should be called on it.


22 posted on 07/30/2011 8:36:10 AM PDT by y6162
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To: bobsunshine
From the article,

....."Congress acts to “fix” or raise the AMT patch every year, "............."Reid’s proposal assumes Congress will not act to fix the AMT at the end of 2011.

All told, the expired tax cuts would cost $3.8 trillion."........

....."Another questionable measure is $1 trillion in savings achieved by cutting the defense budgets for the wars in Iraq and Afghanistan. The analysis questions that claim of $1 trillion in savings, saying that the related spending is not even supposed to occur. ".......

WOW.....talk about DISHONEST. Further into the article, Jeff Sessions brings up more things wrong with this bill:

......"First, section 301 of the amendment directs the Joint Select Committee to reduce the deficit to 3 percent of GDP which is a weak and insufficient goal. The amendment further states that the Joint Committee “may include recommendations and legislative language on tax reform.” This invites tax increases ".........(to cover this loss in 3.4 Trillion loss in AMT if extended)

........." Second, Reid’s amendment would “deem” a budget resolution for fiscal years 2012 and 2013 "........That means that legislation to extend any of the tax cuts would be harder to enact because it would face a point of order under section 311 of the Budget Act for reducing revenues.".........
23 posted on 07/30/2011 8:38:03 AM PDT by Girlene
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To: Son House

>>Cavuto still fears everyone will drop their securities if they are not AAA.<<

A lot of brokerages have rules that they cannot invest in anything lower than AAA.


24 posted on 07/30/2011 8:38:55 AM PDT by B4Ranch (Allowing Islam into America is akin to injecting yourself with AIDS to prove how tolerant you are..)
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To: bobsunshine

Was there ever any doubt?

They’re dimocRATs.


25 posted on 07/30/2011 9:08:22 AM PDT by TribalPrincess2U (I pledge allegiance to the flag of the United States of America.. VOTE out the RATS!)
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To: bobsunshine

COULD contain gimmicks that would raise taxes???

Ya DON’T say...

A Democrat? Doing ANYTHING possible to raise taxes? Why, that’s practically unheard of! ;-P


26 posted on 07/30/2011 9:24:02 AM PDT by J40000
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To: bobsunshine
FOLKS! THE TAX INCREASES AND ADDITIONAL SPENDING ARE BUILT INTO CURRENT LAW!!!!

Obamacare contains scheduled tax increases and scheduled new spending. The 'Bush Tax Cuts' are scheduled to expire in 2012. Social Security & Medicare spending increase dynamically with Baby Boomers reaching their 60s.

Avoiding new taxes and spending in the 2012 budget will accomplish nothing. The new taxes and spending are already in the laws.

Not increasing the debt limit is the same as a 'Balanced Budget'. If the government can't borrow, it must live on current revenue flow. So, stall!! Don't pass an increase in the debt limit.

27 posted on 07/30/2011 10:01:13 AM PDT by CharlyFord (t)
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To: bobsunshine

Harry POS Reid ALERT! “Everything about socialism is sham and affectation.” 23.11 Ch23; Evil; Economic Harmonies; Frederic Bastiat 1801-1850


28 posted on 07/30/2011 11:52:43 AM PDT by PGalt
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