Democrats Confirm Budget Blueprint

(AP)  Congressional Democrats pushed to wrap up negotiations on a budget plan that would help President Obama's ambitious goal of overhauling the health care system.

Negotiators from the House and Senate met Monday, and Senate Budget Committee Chairman Kent Conrad, D-N.D., confirmed details of a tentative pact reached last week that would prevent Senate Republicans from delaying or blocking Obama's plan to vastly expand government-subsidized health care.

The $3.5 trillion plan for the budget year starting Oct. 1 embraces several of Obama's key goals, including health care reform, funds for domestic programs and clean energy, and a tax increase for individuals making more than $200,000 a year or couples making more than $250,000.

But the plan would allow Obama's signature $400 tax cut for most workers to expire at the end of next year. Even after squeezing the defense and war budgets to levels that are probably unrealistic, the plan would cause a deficit of $523 billion in five years.

"I think this is a good budget," Conrad said. But, he added, "Much more will have to be done to get us on a more sustainable course," including slowing the growth of benefit programs like Medicare and overhauling the tax code.

The plan would patch the alternative minimum tax for three years to prevent more than 20 million taxpayers from getting socked with increases averaging $2,000 or so. The estate tax would be kept at current levels and allow for estates up to $7 million to be exempt from the tax with a 45 percent rate applying to inheritances above that.

It would cut Obama's request of about $50 billion worth of increases for non-defense agency operating budgets by about $10 billion, lowering the increases from 10 percent on average to 8 percent.

Under Capitol Hill's arcane rules, the annual congressional budget produces an outline for follow-up tax and spending legislation. Most importantly, the measure would allow Obama's health plan to pass the Senate by a simple majority instead of the 60 votes that are needed for plenty of other legislation.

Democrats and independent allies control 58 Senate seats.

Democrats hope the House will adopt the budget on Tuesday and the Senate on Wednesday, which marks Obama's 100 days in office.

Obama and his Democratic allies say they still want support from Republicans for health care legislation but need the option of expedited action in case the debate becomes overly partisan.

"For this bipartisan process to take root, Republicans must demonstrate a sincere interest in legislating," Senate Majority Leader Harry Reid, D-Nev., wrote in a letter Monday to GOP Leader Mitch McConnell of Kentucky. "Rather than just saying no, you must be willing to offer concrete and constructive proposals."

The fast-track rules also would apply to Obama's plan to eliminate lender subsidies on banks and other lenders presently participating in the federal student loan program. Direct lending by the government would replace the program, with the savings dedicated to boosting Pell Grants for lower-income college students.

While handing Obama a victory, there is still an extraordinary amount of work before Obama's vision of health care reform becomes a reality, including raising taxes and cutting spending to generate $1 trillion or more over the next decade to fund the health care initiative.

The budget plan also anticipates the expiration of former President George W. Bush's tax cuts on wealthier people's income and investments at the end of next year. But it ignores Obama's calls for raising taxes to help pay for his health care initiative by reducing the benefits wealthier people take on itemized deductions like charitable gifts and mortgage interest.

[vuenbelvue]

1st The present members of Congress are selling us out for campaign funds and only term limits will finally settle this. 2. Deficit spending has gone amuck. The current Congress just voted aye for two large stimulus bills (that really aren't stimulus but pork) and are still requesting money for the lobbiest who line their offices. It's in every state of the Union. 3. Foreign spending and Pentagon spending is out of control. 4. Arrogant congressional leaders win 75% of the vote because the majority of the voters are voting party or name recognition.5. Immigration and looking the other way is the creed of the US State Department and it needs to be corralled. Term limits all the way to POTUS. It is not a Democratic or Republican problem. It is a national problem.

[patocc123]

Ah so many lemmings. Anyone who complains about 1 party while passing on the propaganda of thier party is part of the problem. So many on this site who instead of offering a stance on thier position attack the opposition. In reallity with the short term memory of the public, how long do people think they can blame the world's problems on the last 8 years. Seriously how stupid are alot of you guys. Politics runs in cycles, within a decade the political atomsphere will change. Must be alot on teenagers in here that do not see that and or people who never learn from History. Either way, I would like to thank most of you who add to the decline of this country by being a tool of the 2-party system.

[jwind1]

Where was Rowdy when Bush ran up the deficit 8 years in a row-?

Posted by windmaster2 at 6:22 AM : Apr 28, 2009

where were you?

[eclecticman1]

Remember how Bush helped defray the war to nowhere on Iraq? He cut taxes. First time ever, we paid for a war by cutting the government's income. The result was, of course, a huge deficit. At least Obama is looking at ways to pay for his expenditures to get our country back on track.

[knute9]

What does GM, the union, and our government have in common? None of them can balance a check book.

[bigsk8fan]

don't tell me, let me guess. republicans have no new ideas just planed obstruction. and of course, their tried and failed policy of cutting taxes for the rich and big business. that worked so well the last 8 years, they just can't stop a good thing.

[mjvwsr]

"But the plan would allow Obama's signature $400 tax cut for most workers to expire at the end of next year."

Just when I was getting used to Mickey D's he's gonna take it away. I want my $7.69 per week back. His signature sure isn't worth much.

[stn_sage]

I believe there are some good things in it, but it's still too expensive.

With the 'giveaway' of monies to the Fed and Wall Street; they killed any chance at a successful budget that will be effective!

Also, they ought to take 3-4 days and actually read the final proposed budget BEFORE they
blindly pass it!

That's the main reason this government ought to be dissolved and we go to smaller regional governments, because these people are NOT responsibly doing there jobs!

Even a monkey could push a button, or make his 'mark' on a bill; we should expect a little
more than that---and get it---from our representatives---and we AREN'T getting it!