Congressional Democrats near agreement on budget

[me]

Congressional Democrats near agreement on budget

By ANDREW TAYLOR – 3 hours ago

WASHINGTON (AP) — President Barack Obama's Democratic allies in Congress have agreed to let his signature $400 tax cut for most workers expire after next year but are moving to give him a better chance at passing his health care bill.

Senate Majority Leader Harry Reid, D-Nev., said Friday that most issues have been resolved in trying to combine different House and Senate approaches into one budget bill. That measure will set the rules on how Congress considers Obama's agenda for the rest of the year.

Lawmakers are rushing to agree on the budget framework in time to give Obama a victory within his first 100 days in office. Late-night talks Thursday produced the framework of a deal that would protect his ambitious plan to overhaul the U.S. health care system from a Republican filibuster.

A senior Democratic congressional aide revealed the fundamentals of the accord on condition of anonymity because the talks were private.

The negotiations have centered on the annual congressional budget resolution, which sets the parameters for the legislation that follows. Congressional votes next week would provide a symbolic victory for Obama's sweeping agenda to enact a universal health care system, invest in education and clean energy and cut the exploding budget deficit to manageable levels.

Obama marks his 100th day in office on Wednesday.

Most importantly, the tentative agreement would give congressional Democrats the ability to push Obama's health care initiative through the Senate under rules that prevent filibusters. Under typical Senate rules, 60 votes are needed to advance a bill, but passage of the budget plan would allow majority Democrats to enact the health care plan with just a simple majority and only 20 hours of debate.

Democrats hold 56 seats in the Senate plus two independents who typically vote with the party. Republicans have 41 seats, and there is one vacancy.

The fast-track process would limit the ability of Republicans to get concessions and give Democrats far more control over the specifics of the health care legislation. Obama's plan to cut private banks and other lending institutions out of the market for student loans would also move on a filibuster-free path.

But Obama's signature "Making Work Pay" tax cut of $400 for most workers and $800 for couples would expire at the end of 2010 as currently scheduled. The temporary tax cut was part of the economic stimulus plan enacted in February.

Senate Budget Committee Chairman Kent Conrad of North Dakota told reporters that the budget plan would extend for three years a temporary fix that prevents the alternative minimum tax, or AMT, from hitting more than 20 million taxpayers. The AMT was enacted 40 years ago to make sure wealthy people can't dodge the tax system, but it was never adjusted for inflation and now increasingly threatens middle-class taxpayers with increases averaging $2,000 a year.

The budget plan also anticipates the expiration of former President George W. Bush's tax cuts on income and investments at the end of next year. But it ignores Obama's calls for raising taxes to help pay for his health care initiative by reducing the benefits wealthier people take on itemized deductions like charitable gifts and mortgage interest.

The measure also avoids taking a stand on Obama's unpopular cap-and-trade plan, proposed by the White House to raise more than $600 billion to pay for tax cuts and clean energy programs. Under cap-and-trade, the government would auction permits to emit heat-trapping gases, with the costs being passed on to consumers through higher gasoline and electric bills.

The Democratic plan promises to cut the deficit from levels as high as $1.8 trillion this year to about $500 billion by 2014, about 3 percent of the size of the economy. That's the level economists say is sustainable without producing a crippling debt burden.

Republicans are sure to protest the measure as spending, taxing and borrowing too much. And they have been complaining furiously at the prospect of health care reform passing under fast-track rules.

Democrats, including Obama, have said repeatedly that they want the health care debate to be bipartisan and that the filibuster-proof terms would be used only if the GOP obstructs. But Republicans say the move has already poisoned the debate.

"Reconciliation is basically a nuclear weapon to use against the negotiators so what happens is nobody negotiates seriously because they can always go to reconciliation ... tilting the playing field unfairly," said Sen. Judd Gregg of New Hampshire, top Republican on the Budget Committee.
http://www.google.com/hostednews/ap/article/ALeqM5gHAZ8shLcqCPFkexBzGo_Oi26xnQD97OUKC80

Only gonna tax those with an income over $250k huh?  Not gonna raise taxes on the middle class huh?  What happened? 

[Exterminator]

So the part you bolded and underlined is supposed to somehow prove he's raising taxes on the middle class?  Y'all ain't real good with math; are ya?

[me]

I believe it it you who isn't paying attention to what's really going on. 

[Exterminator]

Well it's for damned sure I won't find out by listening to an Andertucky housewife.

[me]

You damn sure won't find out what's going on watching NBC or MSNBC news.

[Exterminator]

But I will from Faux News; right?   

[mcgonser]

[me]

But I will from Faux News; right?   

Ever tried watchin' Glen Beck?  He don't like Bush either.  He will explain stuff so even you can understand it.