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Conservative Democrats Wanted Billions Cut From Budget

I spent some time on the phone earlier today with aides to Mike Johann and Ben Nelson and it turns out there's very little ambiguity: Johann's motion would have resulted in a budget that all-but-froze non-defense discretionary spending, and two high profile Democrats supported it.

Here's how it would have worked.

If the motion had passed, it would have sent the Senate budget back to Sen. Kent Conrad's budget committee with instructions for them to design a new budget which shaped and shrunk proposals in such a way that total non-defense discretionary spending would have grown at an inflation-indexed pace for five years. Inflation is currently very low. Johann's website says, "[u]nder this amendment, spending in FY 2010, would have grown at 1.2% as opposed to the proposed 9% increase.

To highlight the scale of the proposal, when Kent Conrad introduced his budget last month, he called for a seven percent increase in non-defense discretionary spending from 2009 to 2010. That would have increased budget authority from about $490 billion to about $525 billion. Under a budget shaped by Johann's motion, that $35 billion increase would have shrunk to about $5 billion. That's not a spending freeze per se, but it's pretty close.

A spokesman for Ben Nelson says, "Senator Nelson voted yes on Senator Johanns' motion to recommit the budget resolution and instruct the Budget Committee to limit discretionary spending increases to CBO's projected rate of inflation for each of the budget years."

Late update: There's another issue worth highlighting here, too. Bayh and Nelson opposed the Democrats' budget because it was supposedly too profligate. But the two of them nonetheless joined eight other conservative Democrats in a successful effort to pass an amendment that raises the estate tax exemption from $7 million to $10 million and lowers the top rate from 45 percent to 35 percent. The cost of the amendment? About $250 billion.

Perhaps it will be removed in conference.


9 Comments

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Conservative Democrats Wanted Billions Cut From Budget

Yawn.

Conservative Democrats Wanted Tens of Billions Cut From Budget

Hmmm...

Conservative Democrats Wanted Hunderds of Billions Cut From Budget

OK, now you've got my attention. (h/t Sam Ervin)

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Hundreds of billions would be fine with me in two areas:

1. Healthcare reform will save hundreds of billions.

2. Cutting hundreds of billions out of the incredible republican pork in the defense budget.

I can totally get on board with those. The rest of discretionary spending should be untouched. It only makes up 17% of the total budget anyway and is under funded.

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thanks brian for this effort to get comments. brian you are doing a great job! keep it up!

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Aren't these the same folks who offer us the Leave No Billion Dollar Trust Fund Baby Behind Act to guarantee that the very most wealthy of all will not have their estates taxed? These folks are not conservative. They are bought and paid for.

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Ayup, that's them. That should be "estate tax exemption" in the update, not "state tax exemption."

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This is why healthcare must go through reconciliation. With Bayh and Nelson, there's no way we'll get 60 votes.

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Exactly...that's why the Blue dogs were formed in the senate ...to block health care from going through by the reconciliation process (requiring 50 votes) forcing it to go to the filibuster(requiring 60 votes).

Seems the importance of the Waltons (Wal-mart) and 0.02% of the top wealthiest families trumps the issues of the entire rest of the country. Giving more to the wealthiest of the wealthy at the expense of the rest of America during an economic emergency tells me these senators have been bought and are there to protect the business and the holdings of America's elite. These people have no integrity and consider greed a ruling principle. Do their constituents even know what they do in their name?

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I disagree. There's no stomach among Democrats, including Blue Dogs, to block healthcare. When you have business and the Chamber of Commerce saying we need to reform healthcare, that means even the conservadems are on board.

They are NOT on board with cap and trade, however. But healthcare? Yeah, they're there.

Some republicans are there, too but they refuse to give Obama that big win. Do you know how tough it'll be to run against a guy who made healthcare available and affordable to every american?

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What would be american and patriotic, they like that word, is doing what is for the benefit of the american people, as opposed to playing politics. Republicans should get on board with healthcare reform, it is desperately needed for the good of the country, and give obama two terms and play ball. Go for 2016 with a modified and more practical party would be the smart way to go. Unfortunately, they aren't that smart.

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