House Dem budget includes $1.2T in taxes, $200B new stimulus

House Democrats on Monday unveiled a 2014 budget proposal that includes $1.2 trillion in new taxes and $200 billion in stimulus spending.

That's about twice the level of stimulus spending that what was in the Senate Democratic budget, which included $975 million in new taxes.

House Republicans have a budget that would lower tax rates and cut spending by $5.7 trillion compared to the Congressional Budget Office baseline.

The House Democratic budget, authored by Budget Committee Ranking Member Chris Van Hollen (D-Md.), would raise $1.2 trillion in revenue over ten years by ending tax breaks for both corporations and individuals.

“We focus immediately on accelerating the economic recovery, on growing jobs rather than shrinking jobs,” Van Hollen told reporters.

The Democratic budget also includes higher guaranteed transportation spending. 

Van Hollen said his budget included more spending cuts than tax increases if the $1.5 trillion in cuts approved by the last Congress are included.

Van Hollen noted that the House Democratic budget, like that of Senate Democrats, turns off nine years of automatic sequestration cuts that began to go into effect on March 1. He said that this would save 750,000 jobs in 2013 alone compared to the House Republican budget, which cuts $4.6 trillion in spending on top of the sequester cuts over ten years.

The Van Hollen budget, like the Murray plan, ends up with public debt at 70 percent of gross domestic product and with revenue at 19.8 percent. Its spending is at 22.1 percent of the economy in 2023, compared to 21.9 percent for the Murray budget.

House Republicans dismissed the Van Hollen effort as "unserious."

"The House Democrats’ plan imposes over $1 trillion of taxes on families. It increases spending by $476 billion. It allows the safety net to unravel and jeopardizes the retirement security of America’s seniors," Budget Committee spokesman William Allison said. "By clinging to the status quo, the House Democrats have doubled down on Obamacare-style cuts to Medicare and even greater tax increases on families. We need a responsible balanced budget, so we can promote a healthier economy and help create jobs. It is disappointing to see House Democrats take such an unserious approach to budgeting.”.

The House Republican budget, authored by Budget Chairman Paul Ryan (R-Wis.) balances in 2023. Debt is at 55 percent of GDP, while revenue and spending are at 19.1 percent. It keeps cuts to Medicare that passed as part of Obama's healthcare law, while repealing the law itself.

The Democratic budget reduces deficits over ten years by $1.8 trillion compared to the Congressional Budget Office baseline. This compares to $1.75 trillion for the Senate budget and $5.7 trillion for the Ryan plan. 

By using assumptions that more accurately reflect the slowing growth of healthcare costs, the Democratic budget would balance around 2040.

“Our budget will achieve balance about the time the Republican budget achieved balance last year,” he said.

The Van Hollen budget will get a vote this week as an amendment to the Ryan plan.

Last year, Van Hollen offered a budget alternative that got 163 Democratic votes and saw 22 Democratic defections, mostly from the fiscally conservative Blue Dog caucus.

Last updated at 4:10 p.m.