Soaring Federal Deficit Leaves Democrats Unmoved on Spending

Despite Treasury's deficit warning, Democrats continue holding spending cuts hostage to tax hikes

Despite record spending:
  • “The federal budget deficit is on pace to eclipse $1 trillion for a third straight year as congressional and White House negotiators try to hammer out a deal on the nation's budget. The budget deficit for the first nine months of the fiscal year totaled $971 billion, and it could exceed last year's $1.29 trillion shortage, the Treasury Department said in its monthly report on Wednesday.” (Vicki Needham, “Federal budget deficit nearing $1 trillion,” The Hill, 07/13/11)

Democrats continue to hold spending reductions hostage to tax hikes:

  • “But even with yesterday's sketchy outline on the Senate floor, Democrats still haven't laid out any specific plan to cut spending, much less reduce the debt. What we get instead are vague promises that spending cuts are on the table, along with the certainty of higher taxes.” (Editorial, “Conrad Wants $2 Trillion,” Wall Street Journal, 07/11/11)
  • “You can understand why Senate Democrats’ budget is secret. Sen. Kent Conrad (D-N.D.) wants a $2 trillion tax hike.” (Jennifer Rubin, “Morning Bits,” Washington Post, 07/12/11)
  • Democrats insist they won't accept any deal that doesn't have significant new revenues.” (David Gergen, “Why Obama's pushing for a mega-deal,” CNN, 07/12/11)
  • “Republicans won't raise the debt limit any more than the amount of spending cuts. Democrats insist any cuts above $2 trillion be accompanied by tax increases.” (“Democrats Claim Support for 'Big Deal' After Criticizing It,” Fox News, 07/11/11)