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Article History WASHINGTON (Map, News) - Congressional Republicans on Wednesday blasted what they called “the largest tax hike in American history” in the latest budget proposed by House Democrats.
The budget “is an assault on the middle class of America,” Rep. Eric Cantor, R-Va., said before the House began debating the resolution. “What we have before us is a plain, good old-fashioned tax fight.”
The House Democratic budget, like the one approved last week in the Senate, is based on the assumption that Congress won’t renew President Bush’s tax cuts. That would cost taxpayers more than $700 billion over the next five years.
House Budget Committee Chairman John Spratt, D-S.C., said Democrats have “a responsibility to begin to clean up the fiscal mess that we have inherited.”
He and other Democrats pointed to the deficit run by the GOP and the Republicans’ refusal to make cuts in many of the most popular federal government programs.
“The Republican party’s free-lunch fiscal policies spawned record deficits and spiraling debt,” said Majority Leader Steny Hoyer, D-Md. “The amount of foreign-held debt has more than doubled under the Bush administration from about $1 trillion in 2001 to $2.1 trillion today.”
Democrats in both chambers say that at least some tax cuts will be extended but that others won’t unless they’re offset by spending cuts.
“There’s no doubt there will be tough choices to make as we live within this budget,” said Rep. Dennis Moore, D-Kan. “But Americans are not afforded the luxury of living beyond their means, and our government should stop doing so at the expense of our children and grandchildren.”
Republican leader John Boehner, R-Ohio, criticized the Democratic budget but also acknowledged the failure of his own party to control spending when it held majorities in both the House and Senate.
“There’s no question that we need to shine up our credentials on fiscal discipline,” he said. “Mistakes were made. But that was then and this is now.”
Even so, said Rep. Paul Ryan, R-Wis., the federal government should cut spending, not raise taxes, to fix the problem.
“We believe Washington does not have a revenue problem,” he said. “People are already sending enough tax dollars to Washington. Washington has a spending problem.”
churt@dcexaminer.com
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Comments from Examiner Readers
4:06 PM MST on Sat., May. 26, 2007 re: "Congress loads up $20 billion in pork"
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5:49 PM MST on Mon., Apr. 30, 2007
re: "Congress sidesteps dire warnings on Social Security and Medicare"
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3:03 PM MST on Mon., Apr. 30, 2007
re: "Congress sidesteps dire warnings on Social Security and Medicare"
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wayne hutchings said:
the dems throw out their chests, decry the war, get the pork and prove they are the same as the neocons
289 agree | 292 disagree
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Examiner Reader said:
Fixing Social Secuirty is a breeze--and no reductions in benefits or increase in retirement age is necessary. You make it a true defined benefit pension system by changing PayGo to actuarial advance funding using an actuarial cost method called Entry Age Normal. This will allow you to invest a substantial part of the assets in stocks or stock like investments once the short term cash outflows are taken care of by Treasuries. The excess of stock returns long term over Treasury bills is huge--around 6-7% per year. Compunded annually it makes all the difference. I estimate that we already have enough money in Treasuries--around 2 trillion dollars and this is around 4 times one year's cah payout--more than enough. In fact, the SS actuaries forecasts show we do not need any more money until about 2041, or around 34 years from now. For example, just put an additional $50 billion a year into the system and invest it all in a low-cost broad based stock index fund, and that will fix it!
294 agree | 334 disagree
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Examiner Reader said:
It's a shame and a disgrace how our people in Wash. D.C. seem to avert the Social Security and Medicare issues. Then again, why should they be concerned they will not have to rely on either of the two issues and I am sure they will syphon off funds for "more pressing" concerns. The Seniors don't seem to count and are more of a liability than they used to be,
289 agree | 265 disagree
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