WASHINGTON — A top Democrat in the Senate announced a budget blueprint Tuesday that would scrap Barack Obama’s signature tax cut after 2010 and blends sleight of hand with modest restraint on domestic programs to cut the deficit to sustainable levels.
Senate Budget Committee chairman Kent Conrad, D-N.D., promised to reduce the deficit from a projected $1.7 trillion this year to a still-high $508 billion in 2014. But to do so, he assumes Congress would let Obama’s “Making Work Pay” tax credit, delivering $400 tax cuts to most workers and $800 to couples, expire at the end of next year. Those tax cuts were included in Obama’s stimulus package.
The White House responded warmly to Conrad’s plan, noting it embraced Obama’s plans to boost spending on education and clean-energy programs and allow for an overhaul of the health care system while sharply cutting back the deficit inherited by Obama.
On the $400-$800 tax credits, White House budget director Peter Orszag noted that it will be in place for two years, giving the administration and Congress time to find ways to extend it.
Obama will meet with Senate Democrats at lunch today to promote his plan.
