WASHINGTON — Democrats are trying to toughen budget rules to make it more difficult to run up the deficit with new tax cuts or federal benefit programs, a move Republicans say is a recipe for tax increases.
The proposal by Senate Majority Leader Harry Reid, D-Nev., would make it harder to extend permanently some tax cuts that expire at the end of this year, renew health care subsidies for laid-off workers that expire next month, or offer more help to states for Medicaid for the poor.
Some middle-class tax cuts would not be affected, and extended unemployment benefits for the long-term jobless also may be exempt.
The move to stiffen budget rules is aimed at softening opposition among moderates to letting the government extend itself another $1.9 trillion into debt. President Barack Obama is expected to crack down on domestic agency budgets when submitting his budget next week, but tougher steps such as raising taxes and cutting benefit programs are long shots in an election year.
Reid’s “pay-as-you-go” plan would attempt to curb Congress’ free-spending ways, which are turning voters away from Obama and lawmakers in both parties. The plan would require spending cuts or revenue increases to pay for new spending initiatives or tax cuts.
Passing it would take 60 votes in the Senate, a tall order because Republicans are likely to oppose it.
Congress already has similar rules but routinely waives them. The new rules would carry the force of law and would be enforced by the threat of across-the-board spending cuts if they are violated.
A major force behind the tougher budget rules are moderate “Blue Dog” House Democrats, some in danger of losing their seats next fall. They’ve vowed to kill such a huge increase in allowable federal debt if it’s not accompanied by a strict, enforceable way to rein in spending.
