Senate Democrats budget, Patty Murray took the safe route.

            Senat Budget Chairwoman Patty Murray advanced the first Senate budget in 4 years, over 1,400 days. Murrays budget calls for $975 billion in new tax increases over the next decade. The budget also contains some techniques that can make those tax increases even higher. It creates special funds to offset new spending and replaces the sequestration cuts. Minority budget staff estimates the Murray budget could raise taxes by over $1.5 trillion. Which will definitely help towards balancing budget and lowering our debt. She will also attempt to stabalize the debt to GDP ratio.

          The plan calls for $1.85 trillion in defecit cuts over the next decade. It calls for $975 billion in spending cuts split among health care programs, defense and other domestic programs. Her budget protects Social Security, with little to no changes. Another $975 billion will be raised by an overhaul of the tax code. It will eliminate certain deductions that are typically used by ths wealthy and large corporations. It will also eliminate many of the tax loopholes that cost us hundreds of billions of dollars a year, the ones Republicans want to protect. Tax rates will stay the same on lower and middle classes. The plan also calls for $100 billion of new spending on infrastructure and job creation.

            Murrays plan taxes the wealthy to preserve programs for tge poor and middle class. This is how President Obama and the Democrats won the last election. It is a budget that focuses on the next 10 years. She does not get overzealous attempting to cut the defecit in 10 years. She does it in an intellegent and gradual manner. It will not pass because Republicans refuse any more revenue. This budget harms does more for people than the Paul Ryan hokey pokey.

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Paul Ryans budget, more of the same.

              The Republican budget proposal for fiscal year 2014 purports to balance the budget  in 10 years. With a stronger economy and new revenues from the fiscal cliff deal, the task of balancing the budget is somewhat easier. This budget is eerily similar to other budgets proposed by Paul Ryan. It of course attacks the poor and seniors, while giving more to the wealthy and corporations.

              In February the CBO released a baseline projection for the next decade. The fiscal cliff agreement allowed tax rates on the highest incomes to revert to Clinton era levels. In the process this helped reduced future deficits. Paul Ryan voted against that deal.

              The new budget proposal hits all GOP talking points, less spending, lower taxes and a rejection if most of President Obamas health reforms (ACA). Balancing the budget, Ryans proposal doesnt detail all of the assumptions about economic growth or when some of his proposals go into effect. Ryans plan leaves the countrys accrued debt at just under 55% of GDP by the end of the decade. The CBO estimates it as 77%. The CBO wont analyze Ryans or Patty Murrays budget proposals since each simply propose actions and does not detail legislative changed for hitting those targets. Ryan estimates his proposal will grow spending at 3.4% per year, not the projected 5% His plan would put spending at $985 billion below CBO estimates by 2023.

               He wants to reform Medicare. Starting after 2024 it would become a,premium support system. Future seniors could choose between traditional fee-for-service Medicare and the premium support system. This would offer seniors a fixed amount of money to buy private insurance. Ryan proposes converting federal Medicaid funding for states into block grants and repeals health reform laws expansion of the program to low income , non elderly adults. Block grants could increase the burden on states, but gives the states more autonomy about how to set up Medicaid programs. Ryan would also convert food stamps to block grants to states and change eligibilty by imposing time limits on participation and work requirements.

           Ryan would raise the sane amount of tax revenue as the CBO, it would total $40.241 trillion. Ryan would simplify the tax code , reducing the individual income tax brackets to 2 ( 10% & 25%), repeal the Alternate minimum tax, lower the top corporate tax rate to 25% and change roles for international taxation. The 25% upoer tax bracket is about 13% less than they are paying now. This equals to another tax cut for the wealthy.

                   Like Ryans other budget it relies on spurrious budget trickery. His past budgets have also included lofty rhetoric on spending cuts, but little details. He assumes the repeal of Obamacare, but uses the savings from it to balance the budget. This typical Republucan tomfoolery, there us nothing serious about this proposal, they know it cant pass. They set tge numbers so far right that even meeting them in the middle gives the party that lost the ekection the power. The Democrats, mainstream media and the Democrat party have to stop this crazy train in its tracks.

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How do taxes affect the National Debt?

          The best place to start would be the Bush tax cuts. These tax cuts overwhelmingly favor the top 1% & by 2010 have cost us about $2.5 trillion. The looming debt problem is too big just to cut spending, raising taxes is needed to create more revenue. Any adult in this nation that has a large amount of debt knows that spending cuts alone dont work. Most people have to get another job, more revenue. It really is that simple.

           If lawmakers wanted to freeze debt at the level that it is, 62% of GDP. They would have to cut spending by 35% or about $1.2 trillion according to the Government Accountabilty Office. In 2010 all discretionary spending was.$1.35 trillion. We would need to cut even more. GDP at 60% is way too high, historically it is below 40%. We would gave to cut almost everything to get down to 40% GDP. If you take the money from the Bush tax cuts we would be at about $13 trillion in National Debt.

           According to the National Commission of Fiscal Responsibility, they can reduce the National Debt by $372 billion by 2016. They cannot eliminate it, although they did find a total of $3.8 trillion in savings between 2012-2020. They recommend eliminating all tax exemptions, creating 3 tax brackets, 8%, 14% & 23%. With the change in tax brackets they found $160 billion in savings.

            According to the Committee for a Responsible Federal Budget Institute, they would institute a Carbon Tax, splitting the proceeds between Social Security & Deficit Reduction. They would phase out deductions for state & local taxes, eliminate unproductive corporate subsidies & reduce the home mortgage reduction from $1 million to $500,000. Savings would be $400 billion. They reduce public debt by $6.8 trillion over 10 years. The Annual Deficit would not be eliminated, but would be reduced from 5.6% of GDP to 0.7%.

           So regardless of anyones thought process is going to be some combination of spending cuts & raising taxes. The GOP should finally deal with the mess they created, admit taxes need to be raised higher than the last deal. The end result is even with the combination it will takes us many years to bring the debt to a surplus. This country has been in debt since George Washington, why change now.

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Who really helps our economy Democrats or Republicans?

         I was very curious to know who were the real job creators & who added more to the National Debt. There was an insane amount of statistics, an overwhelming amount. As well as plain opinion wich can be heloful in some cases. The court of publuc opinion swings back & forth, Fox News says this, MSNBC says that & CNN really doesnt say much. Many out there try to point finger at Democrats as free spenders & the GOP as self appointed fiscal watchdogs.

       Unemployment rate & job creation are good barometers for a strong or weak economy. Since Trumans administration every Democratic president left office with a lower unemployment rate than when they entered office. In comparison only one Republican president can make this claim. Since 1960 GOP controlled the White House for 28 years & Democrats for 24 years. Democrats created 42 million jobs as opposed to 24 million for the Republicans. GDP growth, employment, consumer price inflation, dow jones industrial averages & the value of the dollar are also good indicators if,economic performance.
                               DEM               GOP                BUSH43
GDP GROWTH             4.1%             2.9%                  2.2%
EMPLOYMENT            2.9%             1.7%                  0.5%
CPI                            4.0%              5.1%                  3.0%
DJIA                          8.1%              6.5%                  0.9%
DOLLAR                    +0.8%             -3.6%                -5.9%

                 1962-2001 presidents prepared 40 budgets, with control of the White House divided evenly.
1) Kennedy-Johnson administrations (1962-1969)- 7 out of 8 years there was a budget deficit. Largest deficit being $110.1 billion in 1968. Only surplus being $13.4 billion in 1969. $250.9 billion was added to the national debt at an average yearly deficit of $31.36 billion.
2)Nixon-Ford (1970-1977)-  Ran deficts all 8 years. Largest being $110.1 billion in 1976, lowest in 1970 at $11.1 billion. Added $702.7 billion to national debt at a yearly average if $87.84 billion.
3) Carter (1978-1981)- Ran deficit all 4 years. Largest deficit $136.6 billion in 1980, lowest $83.1 billion in 1979. ADDED $482.8 billion to national debt at an average of $120.7 billion per year.
4) Reagan (1981-1989)- Ran a deficit all 8 years. Largest $188.6 billion 1989, smallest $31.1 billion 1983. Added $1.94 trillion to national debt at an average of $242.23 billion per year.
5) H W Bush (1990-1993)- Ran a deficit all 4 years. Largest $318.5 billion 1992, smallest $261.9 million 1990. Added $1.16 trillion to national debt at an average of $289.68 billion per year.
6) Clinton (1994-2001)- Ran deficits first 4 years, surplusses all of last 4 years. Largest deficit $213 billion 1994, largest surplus $219 billion 2000. Paid down a net $14.2 billion of national debt & averaged surplus if $1.78 billion per year.
In 20 years the GOP increased the national debt by $3.8 trillion at an average yearly defict of $190 billion. 20 years of Democrat leadership added $719.5 billion to the national debt at a yearly average deficit of $36 billion.

        George W Bush from (2001-2009), grew the national debt to $10.6 trillion. His average yearly spending % from 02-05 was 7.3%, 06-09 it was 8.1%. President Obamas soending % from 10-13 was 1.4% although he did add several,trillion,to the deficit. What does not seem widely known is the Bush administration did not add 2 wars to their debt. Obama took over the mist grim economy since 1933 with unemployment at or over 10%. His administration has brought that down to 7.8% recently despite GOP obstructionism. He saved about 3.4 million jobs with his stimulus, that was less than he asked for because of GOP. The GDP has only grown by 2.2%, one of the slowest recoveries on record. Despite Congress being at a standstill we are recovering.

         Now if anyone can look at these stats & tell me the GOP is better for economy I would say you are nuts. This data backs up my claim & stats are hard to dispute. I know stats can be skewed. If you think otherwise feel free to dispute thus.

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