[Guest post by DRJ]
Here are a few of the things Democrats plan if they win in November:
Rep. Barney Frank wants to cut defense spending 25% and effectively defund the troops to get the US out of Iraq sooner:
“In a meeting with the editorial board of The Standard-Times, Rep. Frank, D-Mass., also called for a 25 percent cut in military spending, saying the Pentagon has to start choosing from its many weapons programs, and that upper-income taxpayers are going to see an increase in what they are asked to pay.
The military cuts also mean getting out of Iraq sooner, he said.”
Frank also plans to spend more money and raise taxes, and he is joined by Speaker Nancy Pelosi and Majority Leader Harry Reid who want to call a special session of Congress to spend $150B:
“After consulting with Barack Obama, Democratic leaders are likely to call Congress back to work after the election in hopes of passing legislation that would include extended jobless benefits, money for food stamps and possibly a tax rebate, officials said Saturday.
The bill’s total cost could reach $150 billion, these officials said.”
Other reports suggest the Democrats have inflated their spending goals to $300B or more.
Meanwhile, House Democrats contemplate abolishing 401(k) tax breaks in favor of a government mandated and run system:
“Under [a plan by Teresa Ghilarducci, professor of economic-policy analysis at The New School for Social Research in New York], all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government but would be required to invest 5% of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would pay 3% a year, adjusted for inflation.
The current system of providing tax breaks on 401(k) contributions and earnings would be eliminated.”
Finally, the DC Examiner reviews recent liberal spending bills that will likely resurface under a Democratic government:
• Tax relief for trial lawyers — $1.5 billion worth over a decade by changing rules to encourage more and riskier “jackpot justice” lawsuits. (Section 311 of H.R. 6049.)
• Obama’s own proposed Global Poverty Act that would require the United States to spend its own money working at “eradicating extreme hunger, promoting gender equality, empowering women… ensuring environmental sustainability…[and] achieving significant improvement in the lives of at least 100 million slum dwellers” worldwide. Frank Gaffney of the Center for Security Policy did the math and concluded this would amount to a new commitment of $845 billion in new foreign aid through 2015. (S.2433)
• New federal subsidies to buy gas for families making up to three times the federal poverty line, which would be $63,600 in annual income for a family of four. (H.R. 6561)
• Wage insurance. Create a new federal payroll tax on all workers to pay for “insurance” that would – get this – pay people up to 50 percent of the difference in wages between an old job and a new, lower-paying job. So if John Doe voluntarily takes a new job that requires 10 hours less work per week, the government would pay him for five of the hours that he doesn’t work – courtesy of other, harder-working wage earners.
• A new, Cabinet-level, multi-billion-dollar federal Department of Peace, dedicated to “peace education and training.” (H.R. 808)
The Democratic Party’s first order of business will be “No Dollar Left Untaxed or Unspent.”
UPDATE: Mike K at A Brief History has much more on the 401k proposal.