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Thursday, January 6, 2011

POLITICO.com: GOP House rules will cost $1 trillion

by Scott Wong , POLITICO.com
The GOP approach to deficit reduction

Top Senate Democrats warned that new rules passed by the Republican-controlled House a day earlier would actually increase the deficit by $1 trillion.

Rightardia reported that the Republicans don't want to include Obamacare reform and he the Estate Tax" in their budget care deficit reduction computations because they know that the repeal of Obamacare will cost taxpayers billions to restore corporate windfall health care profits.


Likewise, the Estate tax only affected the top 5,000 American families when GW Bush suspended the tax. In the recent Obama compromise, Obama raised the Estate tax threshold to $5 million which let another 50,000 millionaire families of the hook for the estate tax. The compromise will reduce federal revenues by billions.


The Republicans simply want to put their 'heads in the sand" and ignore the realities of repealing Obamacare and that the Estate Tax compromise will have on deficit reduction.

Republicans, who formally took control of the House Wednesday promised a renewed focus on deficit reduction, want to permanently extend estate and income tax cuts for millionaires, give businesses new tax breaks and repeal the health care law — all things that Democrats say will increase the deficit.

“They want to do all this — very nice — but they want to charge it all to Uncle Sam’s credit card,” New York Sen. Chuck Schumer, who heads policy and messaging for Senate Democrats, said at a news conference. “They don’t want to pay for it.”

A Democratic budget analysis, based on figures from the Joint Committee on Taxation and Congressional Budget Office, found that new GOP House rules would swell the deficit by $1.07 trillion.

A CBO report out Thursday revealed that repealing the health care law would increase the deficit by $230 billion through 2021.


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