Amidst all the divisive talks that have occurred over sequestration, one fact has become abundantly clear: Democrats want to increase revenues. With Friday’s budget cuts set to take effect and a looming government shutdown March 27th, notable Dem leaders have hinted that any progress will have to start with more taxes, Politico reports:
"’Reid was noncommittal on the CR, but he insisted his party would seek new taxes as part of a deal to reverse the sequester.
’We cannot solve the problems of this country with cuts, cuts, cuts. We’ve cut $2.6 trillion. We need to do more. But we’re going to do it with — in a balanced approach.’”
Reid’s comments may not come as a shock, but rather, an unfortunate glimpse into the upcoming talks to renew the stopgap continuation.
In an estimate put forth today by the non-partisan Congressional Budget Office, economists recommended changing to a new, lower inflation adjustment known as the chained consumer price index. If the proposal went through, the government would curb federal spending by $198 billion incrementally over the next ten years.
The resolution garnered support from Republicans, including House Speaker John Boehner (R-OH), who suggested the plan during his multiple sequestration talks with President Obama. However Democrats have been reluctant to support shifting the inflation index, citing a need for broader tax increases before considering any changes to inflation.
This will mark the third proposed solution that the party has rejected in order to force Republicans to pass tax reform legislation. Unlike today’s budget cuts, a government-wide shutdown would have an immediate impact on the livelihoods of American citizens, yet Democrats still insist on gambling with an already fragile U.S. economy.