Sen. Ben Nelson, one of the more conservative Democrats in the chamber, has said that a deficit-reduction deal should focus on reducing spending, and not finding new revenues.The Nebraska Democrat also said in a Wednesday statement that he thought a significant plan to roll back deficits would not necessarily have to take aim at entitlement programs.
“I want to see a broad and serious package of spending cuts,” Nelson said. “And we can cut trillions of dollars of spending without attacking Medicare and Social Security. But if we start with plans to raise taxes, pretty soon spending cuts will fall by the wayside.”
You see in Nelson’s statement the shifting fault line in American politics. Republicans want to cut spending, slash entitlements, keep taxes low for the rich, and redistribute wealth upwards. Democrats want to cut spending and keep taxes low, and aren’t really that concerned about the redistributional effects. They want to maintain entitlements, but they believe that some cuts may have to be endured, as long as we’re not “balancing the budget on the backs of seniors.” And that’s the difference between the parties. It’s a long way from the Great Society.
As it considers steep cuts to domestic programs in an effort to slash the deficit, the House is set to consider a defense spending bill on Wednesday that increases the Pentagon's budget by $17 billion.
The Defense Department appropriations bill includes $530 in base Pentagon spending, which is $8 billion less than President Obama's request for fiscal year 2012. There's an additional $118.6 billion for overseas contingency operations -- a $39 billion drop, reflecting the expected drawdown in the wars in Iraq and Afghanistan.
Republicans announced in May that they were going to try to cut $30 billion from federal agencies' operating budgets in order to deal with the growing deficit.
While the Pentagon isn't getting all the money the Obama administration would like it to receive, it's still in a significantly stronger position than many other government agencies. If the Pentagon gets its full $17 billion increase, that means that domestic agencies have to absorb $47 billion in cuts.