Senate Dems rally around Conrad's left-leaning budget proposal, tax raises

Senate Democrats on Wednesday embraced a budget proposal that is significantly to the left of President Obama’s plan on raising new tax revenues. 

The prospects of the blueprint passing the Senate are bleak, but its emergence after months of negotiation is aimed at countering GOP criticisms that Democrats haven’t passed a budget in two years. Democrats believe some of the proposal could be merged into a bipartisan agreement on raising the debt ceiling. 

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The budget plan would reduce the deficit by $4 trillion over 10 years, according to the baseline used by its author, Senate Budget Committee Chairman Kent Conrad (D-N.D.). Using the benchmark assumptions of Obama’s fiscal commission, Conrad said his budget would reduce the deficit by nearly $5 trillion.

Roughly half of that total would come from raising government revenues through new taxes and the closure of special tax loopholes, according to Senate sources familiar with the plan. 

That would put the total amount of additional tax revenues called for by the Conrad budget in the neighborhood of $2 trillion over 10 years, significantly more than what Obama has proposed. 

In April, Obama called for a ratio of $3 in spending cuts for every $1 in tax increases, according to a White House fact sheet released at the time. 

Conrad appears to have the votes to clear his measure through his panel, though he will need two GOP targets in 2012 — Sens. Bill NelsonClarence (Bill) William NelsonThe most expensive congressional races of the last decade Lobbying world Bottom Line MORE (D-Fla.) and Debbie StabenowDeborah (Debbie) Ann StabenowOn The Money: GAO to investigate Trump aid for farmers | Bloomberg calls for bolstering Dodd-Frank | Where the 2020 Democrats stand on taxes GAO launches investigation into Trump aid for farmers Democrats worried about Trump's growing strength MORE (D-Mich.) — to back the plan. Both senators sit on the Budget Committee, which comprises 12 Democrats and 11 Republicans. Budget panel member Bernie SandersBernie SandersSchiff blasts Trump for making 'false claims' about Russia intel: 'You've betrayed America. Again.' Buttigieg campaign claims 'irregularities' in Nevada caucuses Poll: Sanders leads 2020 Democratic field with 28 percent, followed by Warren and Biden MORE (I-Vt.) now supports Conrad’s plan after criticizing an earlier draft of it. 

Other vulnerable Democratic members who are up for reelection, such as Sens. Ben Nelson (Neb.), Joe ManchinJoseph (Joe) ManchinWhere do we go from here? Conservation can show the way Lawmakers push back at Trump's Pentagon funding grab for wall Overnight Health Care: Appeals court strikes down Medicaid work requirements | Pelosi's staff huddles with aides on surprise billing | Senate Dems pressure Trump to drop ObamaCare lawsuit MORE (W.Va.), Jon TesterJonathan (Jon) TesterDemocratic senator: 'The ultimate of ironies' for Trump to hit Romney for invoking his faith Committee on Veterans Affairs sends important message during tense Senate time Democrats cry foul over Schiff backlash MORE (Mont.) and Sherrod BrownSherrod Campbell BrownTrump pick for Fed seat takes bipartisan fire On The Money: Deficit spikes 25 percent through January | Mnuchin declines to say why Trump pulled Treasury nominee who oversaw Roger Stone case | Lawmakers trade insults over Trump budget cuts Mnuchin defends Treasury regulations on GOP tax law MORE (Ohio), might not have to vote on the resolution. 

Senate Majority Whip Dick DurbinRichard (Dick) Joseph DurbinOvernight Energy: EPA to regulate 'forever chemicals' in drinking water | Trump budget calls for slashing funds for climate science centers | House Dems urge banks not to fund drilling in Arctic refuge Democratic senators criticize plan that could expand Arctic oil and gas development Democratic senators ask DOJ watchdog to expand Giuliani probe MORE (D-Ill.) said Wednesday that leaders are weighing the “pros and cons” of holding a floor vote.

In a release issued Wednesday, Ben Nelson signaled he is wary of Conrad’s plan, calling for debt reduction to focus on spending cuts. 

Other Senate Democrats rallied around Conrad’s new proposal during a private lunch meeting Wednesday, where the retiring senator unveiled his long-delayed plan. 

“I like it,” said Sen. Dianne FeinsteinDianne Emiel FeinsteinCalifornia lawmakers mark Day of Remembrance for Japanese internment Democratic senators ask DOJ watchdog to expand Giuliani probe House passes bipartisan bill to create women's history museum MORE (D-Calif.). “I don’t have all the details, but it’s clear to me that the Budget Committee and the leadership of Sen. Conrad has put together a very careful budget.”

Another Democratic senator who attended the meeting said: “Nobody spoke against it. Nobody.” 

Some Democratic senators have reservations about the sprawling plan, but they have decided to set their qualms aside for the sake of party unity. Many have realized that the internal disputes that had stymied their ability to produce a budget blueprint were becoming a political liability. 

“Everyone’s got problems with it,” said one Democratic senator. “Hell, I have problems with it. But the reaction was very positive.” 

Conrad had opted to keep the details of his blueprint under wraps while he works over the next several days to address some of those concerns. 

Democratic senators who requested anonymity said Conrad’s plan also calls for significant cuts to Pentagon spending and sets up a sizable fund for infrastructure spending.

Sen. Kay HaganKay Ruthven HaganCoronavirus poses risks for Trump in 2020 GOP braces for Democratic spending onslaught in battle for Senate Democrats will win back the Senate majority in 2020, all thanks to President Trump MORE (D), a centrist from North Carolina, said she wants spending cuts to make up a larger percentage of the proposed savings over the next decade. 

Hagan said she would like to see a ratio similar to what the fiscal commission chaired by former Sen. Alan Simpson (R-Wyo.) and former Clinton White House Chief of Staff Erskine Bowles proposed. 

The fiscal commission suggested $2.2 trillion in discretionary and mandatory spending cuts and $785 billion in new revenues from reforming the tax code and other measures, a ratio of roughly 2.8 to 1. 

Senate Republican Leader Mitch McConnellAddison (Mitch) Mitchell McConnellSanders is a risk, not a winner Buttigieg sounds alarm after Sanders wins Nevada Where do we go from here? Conservation can show the way MORE (Ky.) in recent weeks has argued that tax increases should be taken off the table because Democrats can’t even bring themselves to vote for them. He has noted that Democrats voted to extend virtually all of the Bush tax rates last year, when they controlled the Senate and House. 

The Senate Democratic budget is designed to make a strong statement that tax revenues should be increased substantially by requiring wealthy families to pay more into federal coffers and closing special corporate tax breaks. The plan includes a tax increase for couples making more than $1 million per year. 

Senate Republican leadership aides said Wednesday they were eager to see the details of Conrad’s plan, while wasting no time in blasting Democrats for raising taxes by $2 trillion. 

Democrats argued the Conrad resolution provides a sharp contrast with the House-passed budget plan sponsored by Rep. Paul RyanPaul Davis RyanPaul Ryan says he disagrees with Romney's impeachment vote Trump doubles down on Neil Cavuto attacks: 'Will he get the same treatment as' Shep Smith? Trump lashes out at Fox News coverage: 'I won every one of my debates' MORE (R-Wis.), which would replace Medicare with what Republicans call a “premium support” plan. Democrats say Ryan would turn Medicare into a voucher system costing seniors an additional $6,400 per year. 

Durbin said Conrad’s budget proposal does not touch Social Security and has a “very small,” 10-year effect on Medicaid. “It does not savage it,” he said. The Illinois Democrat also noted that the House-passed budget cuts Medicaid spending in half. 

Durbin said that the plan’s cuts to Medicare are only $29 billion over 10 years, but later expressed some doubt about the accuracy of that number. 

Sen. Joe Lieberman (Conn.), an Independent who caucuses with Democrats, said he was worried about the size of cuts to national-security spending and questioned if the proposed Medicare cuts would do enough to extend the program’s solvency. 

Julian Pecquet and Erik Wasson contributed to this report.