Dems Consider Tax Hike Proposals

The Hill reports:

Senate Democrats are discussing plans to introduce tax policy changes that they say would raise federal revenues and broaden the budget debate beyond discretionary spending cuts.

Democrats feel they have been boxed by Republicans into a debate over cutting discretionary spending, which accounts for a mere 12 percent of the federal budget.

Democratic senators say they have been fighting on the defensive, scrambling to protect social spending — such as that for the Women, Infants and Children nutrition program, Planned Parenthood and NPR — from GOP-proposed cuts.

Democrats want to take the offensive and propose higher tax rates for millionaires, companies that move factories overseas and wealthy people who make charitable contributions.

Senior lawmakers say the debate over spending levels for the rest of 2011 is too far along to begin insisting that a six-month stopgap include tax increases to reduce the $1.6 trillion deficit.

But they say tax policy changes should be part of the debate over the 2012 budget. That debate will kick off next week when House Republicans are expected to introduce their 2012 spending plan.

“I’m picking up that the administration will take its stand on the 2012 budget. The 2012 budget will have to have revenue raisers and mandatory cuts and hold the line on discretionary spending,” said a senior Democratic senator.