Senate Passes Budget for the First Time in Four Years
For the first time since 2009, the Senate passed a budget after a marathon session that lasted until about 5:00 am (EST) Saturday morning. The vote slimly passed: 50-49.
All 45 Republicans and four Democrats voted against the $3.7 trillion 10-year plan (FY2014-2023). The four Democrats were Mark Pryor (Arkansas), Kay Hagan (North Carolina), Mark Begich (Alaska) and Max Baucus (Montana). A fifth Democrat, New Jersey's Frank Lautenberg, did not vote.
The Senate budget plan would reduce, but not eliminate, the deficit over the next 10 years by a combination of spending cuts and tax increases. The spending cuts do not include the sequester. Although attention has focused on the effects of the sequester for this year (FY2013) -- for which it remains in place -- pursuant to the Budget Control Act of 2011 it lasts until FY2021....
thank you for your response, and your point is well taken. However, we are dealing with the budget passed in the U.S. Senate and spending increases are written into the baseline. Even the sequester cuts are not cuts they are simply a reduction in a scheduled increase. All things being equal your point is true, but we are not dealing with a model of spending staying the same.
Unprofitable Servant wrote: Tax increase DO NOT translate to more revenue.
Deficits go up not due to less revenue but due to higher spending.
You just contradicted yourself.
-If revenues do not go up when tax rates increase due to increased avoidance then revenues must go down. -Even if all other things are held constant (i.e. spending) -then the deficit will go up solely as a result of lower tax revenues.
When you start with the wrong premise you draw the wrong conclusions. Tax increase DO NOT translate to more revenue. If you want to raise more tax revenue to the government it has been proven in 1920's 60's, 80's and 2000's you lower tax rates. People go out of their way to avoid higher taxes everywhere in the world. Deficits go up not due to less revenue but due to higher spending.