Analysis says Reid’s budget plan contains gimmicks that could result in tax increases

Daily Caller ^ | July 30, 2011 | Amanda Carey

[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.

[silverleaf]

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

[y6162]

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

[Girlene]

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.".........

[B4Ranch]

>>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.

[TribalPrincess2U]

Was there ever any doubt?

They’re dimocRATs.

[J40000]

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

[CharlyFord]

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.

[PGalt]

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