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Monday, July 25, 2011

Leader Reid Provides Update On Senate Debt and Deficit Plan: A Debt Plan without Revenue Increases is not Balanced



Since Senate Leader and President Obama haven't been able to reach a Debt and Deficit Reduction Agreement with House Speaker Boehner. I believe its smart of Leader Reid to unveil Senate Democrats own plan to get the Debt and Deficit under control. That hopefully passes the Senate and gets sent to the House and has the House actually vote on something that the Senate passes. Perhaps for the first time in the Congress, which is a sad thing that it would take the Senate seven months to pas anything. But thats more about how inefficient the Senate is which is a different story. But it looks like at least in its current form, that the Senate Democrats Debt Plan, does not include Revenue Increases. Tax Hikes on the wealthy or closing Tax Loopholes, meaning House Minority Leader Pelosi and most of her Democratic Caucus won't vote for it. And since President Obama has essentially endorsed the Senate Democrats plan, this will make the Democratic Base more angry with him and will make them angry at the Senate Democratic Leadership as well. Senate Democrats have a 53-47 majority over Senate Republicans and even though the Senate Minority can't block budget related items. The Senate Majority can only lose three votes, I believe the debt plan offered by the Senate Democratic Leadership will divide Senate Democrats without any republicans voting for it. Meaning that of course it won't pass, because Senate Democrats will see the plan as unbalanced and won't be the exact plan that House Republicans passed in the House. I see the Leader Reid's plan as a good faith effort to put something on the table that he and his caucus will officially go on the record as being in favor of. The problem with it other then its not balanced, is I believe he'll have a very hard time just passing his plan in the Senate. And this could end up being more wasted effort with the Default Deadline getting even closer and time is running out. What Leader Reid should do instead is to try to pass a plan that brings his caucus behind him, that included Budget Cuts, including defense, reforms including entitlements and Tax Hikes on the wealthy and closing Tax Loopholes. House Republicans as of now won't vote for it but at least democrats will have finally put something on the table and have a plan.

A Balanced Plan in Deficit Reduction is Shared Sacrifice and that means everyone who can afford to contribute, does that. And that means Tax Hikes on the wealthy, closing Tax Loopholes, budget cuts including in defense but everywhere in the Federal Government. And reform including in entitlements in a way that doesn't hurt anyone who actually needs these programs. What Leader Reid has offered is unbalanced and will divide Senate Democrats as well as Senate Democrats with House Democrats. And make the Democratic Base even more angry and disappointed at the Democratic Party.