Congress Approves $736 Billion Tax Increase
** FY 2008 spending: $2.96 trillion
** Tax Increases: assumes $736 billion more in taxes over five years compared to the extension of current tax law.
** Budget Enforcement: includes budget points of order that are designed to reduce the deficit through tax increases rather than spending restraint. 60 votes required to cut taxes, but only a simple majority is needed to raise taxes.
** Discretionary Spending: provides $954 billion (after cap adjustments) in discretionary budget authority for FY 2008, which is $21 billion above the President’s request.
** Mandatory Spending: includes $389.6 billion for Medicare in 2008, an increase of $24 billion (+6.6 percent) over 2007. The average annual increase in Medicare spending during the five-year budget window is 5.3 percent.
** Deficits Higher under Democrat plan: Under the Democratic plan would be higher over the next two years than the $150 billion to $200 billion the Congressional Budget Office now predicts.