Saturday, October 1, 2011

Democrat Senate Want Tax Hikes to be Discuss First



The only purpose to raise taxes is to allow Congress to spend at their leisure. The idea to cut spending is heresy to Democrats. In fact, raising the debt limit was a mistake. Amassing trillion of dollars in yearly deficits will destroy this economy. Raising taxes will deter business to grow, business won't hire people, and may cause some business to go into bankruptcy. Also, it will cause more people to work less hard, less hours, and be less productive. In hope to spread the blame, Democrats want to share their stupidity in raising taxes with Republicans. I highly doubt Republicans will fall for it.

(Reuters) - Democrats want tax hikes to be the first item negotiated in "super committee" deficit-reduction talks, trying to force Republicans to confront an issue at the heart of this year's budget fights, sources told Reuters.

The tough stance by Democratic members of the powerful 12-member congressional panel reflects the party's wariness that Republicans might try to sideline the issue of revenue increases in the negotiations.

"They've raised the idea of doing taxes first," a Republican aide involved in the discussions said on Friday on condition of anonymity.

The panel has the task of finding ways of cutting the deficit by at least $1.2 trillion over 10 years. If it fails to agree on a plan by November 23, automatic spending cuts will be triggered, beginning in 2013.

If Democrats hold firm to their demand for taxes to be discussed first, that could make it hard for the committee to make the tight November deadline. Congress is due to vote on the panel's recommendations by December 23.

During the super committee's initial closed-door meetings, "Republicans wanted to just talk about spending cuts and Democrats said, 'No,'" the aide said.

Republicans strongly oppose tax hikes, arguing they will hurt an anemic economic recovery. But they have not ruled out closing some tax loopholes as part of tax reform. Democrats, including President Barack Obama, insist revenue increases must be part of any deficit reduction deal.

Democrats' calls for increasing taxes on the rich may have been bolstered by a new Congressional Research Service analysis. The September 23 report obtained by Reuters concluded that letting decade-old tax cuts for the wealthy expire at the end of next year as scheduled "could help reduce budget deficits in the short term without stifling the economic recovery."