The Heritage Foundation has looked at it. As has already been pointed out, Senate Budget Committee Chairwoman Patty Murray’s (D, WA) budget has little good in it; although it does preserve the sequester cuts in their magnitude and general allocation. However.
Cynically, it raises taxes on Americans—and amazingly, on our businesses, which already are subject to the highest rates in the world—by a shade over $1.5 trillion. This isn’t new, but their budget is worse than originally thought. The Democrats’ guess (and I use that term advisedly) of getting $155 billion per year over the next 10 years is based on their erroneous static analysis. A dynamic analysis, which includes the actual and ongoing effects of taking this much money out of the economy, indicates that this “budget” would only get $88 billion per year. Heritage’s graph below illustrates the year-by-year revenue flow.
This only exacerbates the impact of the Democrats’ continued increases in spending on our debt and on our economy. Their 5% increase in spending, in every year of those same 10 years, increases the Federal budget deficit, and it contributes to a continued explosion in our national debt—to the tune of $7 trillion more added to an already ruinous level.
But that’s all to the good, anyway, right? The Democrats say so. The Senate Republicans have a different analysis. Overall, they point out that this budget would
- Lower GDP by $1.4 trillion over 10 years.
- Cut job growth by an average of 853,000 jobs each year.
- Slash after-tax incomes by $1.9 trillion over 10 years.
- Shrink household income by $1,512 per year.
They also look on a state-by-state basis, and the outcome is clear and even starker (it’s important to note here that the state-by-state analysis was done by the Senate Budget Committee’s staff economists, not by Republican staffers). Here are the outcomes for, oh, say, California and Texas.
For the state of California these tax changes mean losses in personal income, household disposable income, and job opportunities:
For the state of Texas these tax changes mean losses in personal income, household disposable income, and job opportunities:
There are no states—none—in which the Budget Committee’s staff economists projected gains in personal income, household disposable income, or job opportunities. Every state suffers losses as a result of this Democrat budget.