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Dems Propose Largest Tax Increase In U.S. History

The Heritage Foundation released its analysis of the Senate Democrat's first budget resolution today.  Here are some of the highlights:

"The Senate Democrats, writing their first budget resolution since winning control in Congress last fall, have produced a budget blueprint that:

• Raises taxes by $900 billion over five years and a projected $3.3 trillion over ten years;
• Translates into a tax increase of $2,641 per household annually over the next decade;
• Includes 22 reserve funds that could be used to raise taxes by hundreds of billions more;
• Increases discretionary spending by nearly 9 percent in FY 2008 and does not terminate a single program;
• Completely ignores the impending tsunami of Social Security, Medicare, and Medicaid costs;
• Creates rules that bias the budget toward tax increases; and
• Employs the same gimmicks that Congress criticized the President for using in his budget proposal.

"The Senate budget relies on massive tax increases while ignoring the coming tsunami in Social Security, Medicare, and Medicaid spending. This classic tax-and-spend budget would likely assure the expiration of the tax cuts that have helped to create jobs and promote economic growth. The result of the Senate budget would likely be higher tax rates on families and businesses, slower economic growth, and a nation woefully unprepared to fund the coming retirement benefits of 77 million baby boomers. Lawmakers should go back and write a budget that deals realistically with coming entitlement costs and does not raise taxes to fund more government spending."

The entire report can be seen here.

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Addition points on the Democrat Senate and House Budget Proposals:

Despite Democrat Tax Patch, The Dem Budget Proposal Still Allows For Largest Tax Increase In U.S. History:
Senate Budget Chairman Kent Conrad's Budget Assumes "[T]hat The President's Tax Cuts From 2001 And 2003 Will Expire In 2011..."  (Emily Pierce, "Budget Debate Rests On Fate Of Bush's Tax Cuts," Roll Call, 3/20/07)

• Citizens Against Government Waste: "Allowing The Tax Cuts To Expire Will Create The Biggest Tax Increase In History: $900 Billion." (Citizens Against Government Waste Website, "CAGW Condemns Senate Democrats' Budget," Press Release, www.cagw.org, 3/15/07)
  

Democrat Amendment Subtracts Only $180 Billion From The $900 Billion Tax Hike. "Moderate Democrats favoring tax cuts have forced a rewrite of the plan, pushing through an amendment Wednesday that would ... devote $180 billion in 2011-12 to preserve tax cuts aimed at the middle class." (Andrew Taylor, "Senate Democrats Rewrite Budget Plan," The Associated Press, 3/22/07)

Senator Jon Kyl (R-AZ): "If the Baucus amendment is adopted, then Democrats will be proposing to raise taxes on hard-working Americans by $736 billion over 5 years, rather than the $916 billion, still the biggest tax increase ever." (Sen. Jon Kyl, Congressional Record, 3/21/07, p. S3492)

Republicans Offered Amendments To Help American Taxpayers, But Were Shot Down By Dem Majority:

Democrat Senators Unanimously Voted Against Extending The College Tuition Tax Deduction. (S.Con.Res.21 Amdt.No.507, CQ Vote #83: Rejected: 47-51: R 47-2; D 0-47; I 0-2, 3/21/07)

Democrat Senators Unanimously Voted Against Extending Provisions Of The Student Loan Interest Deduction. (S.Con.Res.21 Amdt.No.507, CQ Vote #83: Rejected: 47-51: R 47-2; D 0-47; I 0-2, 3/21/07)

Democrat Senators Unanimously Voted Against The Permanent Extension Of Capital Gains And Dividends Tax Relief. (S.Con.Res.21 Amdt.No.507, CQ Vote #83: Rejected: 47-51: R 47-2; D 0-47; I 0-2, 3/21/07)

Democrat Senators Unanimously Voted Against Protecting Senior Citizens From Higher Taxes On Their Retirement Income. (S.Con.Res.21 Amdt.No.507, CQ Vote #83: Rejected: 47-51: R 47-2; D 0-47; I 0-2, 3/21/07)

Democrat Senators Unanimously Voted Against An Amendment To Facilitate The Extension Of The 2001 And 2003 Tax Cuts.  (S.Con.Res.21 Amdt.No.466, CQ Vote #85: Rejected: 46-52: R 46-3; D 0-47; I 0-2, 3/21/07)

Dems In The House Are Still Backing A Budget To Increase Taxes By More Than $900 Billion:
The Democrat's Budget Plan In The House "[A]ssumes Bush's Tax Cuts Indeed Disappear..." (Andrew Taylor, "Senate Democrats Rewrite Budget Plan," The Associated Press, 3/22/07)

• House Proposal Would Implement $900 Billion Tax Hike. "Unlike the Bush proposal, both Democratic plans also rely on revenue from the expiration of the 2001 and 2003 tax cuts in 2010." (Steven T. Dennis, "Senate, House Budget Plans Similar," CQ Today, 3/20/07)