Democrats

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Democratic Party

  • Founded in 1792, arguably the oldest political party in the world
  • Based on the fiscal policies of Alexander Hamilton

In general, the main points of the Democratic Party’s Ideology are as follows:

  • Main role of the government is to be responsible for the care of its citizens
  • Believe in structured regulated markets and minimal external entanglements
  • Gun Control: strong gun control/in some cases outright banning of guns for individual citizens
  • Abortion: Believe in a woman’s right to choose, it can be performed at any stage of pregnancy
  • Entitlement Programs: People should share economic burdens and generally support welfare programs for the poor
  • Religion: Believe in separation of church and state
  • Balanced Budget: Opposed to a Balance Budget Amendment
  • Crime: Protect the rights of the accused
  • Death Penalty: In favor of banning
  • Defense Spending: Decrease or maintain
  • Gay marriage: Support gay rights and gay civil unions

Fiscal Policy:

Over a 10 year period the long term goals of the Democratic Party’s fiscal policies are summarized as follows:

  • Debt compared to GDP (Gross Domestic Product) would reach 74% by 2022
  • Requires an increase in the debt ceiling of roughly 8 trillion through 2022
  • Democrats are in favor of applying large amounts of funds to programs that are intended to grow the economy.  Main points include both targeted tax cuts and spending increases. Suggested programs include:
  •  Establish a National Bank (NIB): 10 billion in government funds would be used to assist projects in transportation, water or energy that lack funding. Basic requirements are the project must be worth at least 100 million and benefit the public. The NIB would work with private investors to provide funding with the government ultimately being responsible for 50% of the total projects costs.
  • $50 billion in allocations going towards surface transportation priorities (Repairing of Roads & Bridges)
  • $80 billion in allocations, over a ten year period, going towards education. ($30 billion for rebuilding schools, $25 billion to prevent education layoffs, and $8 billion for colleges to train workers in high growth industries.
  • $32 billion allocated by enacting a 10% tax credit for new jobs and wage increases
  • $12 billion allocated by enacting tax credits for investments in energy manufacturing for alternative fuel technology
  • Send 5$5 billion to states in order to hire police officers and firefighters
  • $1 billion towards the establishment of a Veterans Job Corp to employ 20,000 veterans
  • $6 billion to prevent student loan rates from doubling in the middle of 2013
  • Allocation of funds towards to development of science and engineering workforces (No details)
  • Allocation of additional resources to maintain lending levels for current loan programs

Medicaid

  • No specifics mentioned other than an opposition to block granting the program

Medicare

  • No specifics mentioned only an opposition to premium support

Social Security

  • No specifics mentioned only an opposition to privatization

Revenue Policies

All increase in revenue will come from tax raises on upper income Americans who earn above $200,000 for a single tax payer and $250,000 for a married couple

  • Allow the “Bush” tax cuts to expire for the top earners, returning the rate to 39.6% Generates 1 trillion over a decade
  • Enact the Buffet rule, a 30% minimum effective tax rate for all high income earners regardless of the source of income. It will replace the Alternative Minimum Tax
  • Keep the Alternative Minimum Tax (AMT) but adjust a “patch” for inflation. It will be fully paid for at a cost of $1 trillion over 10 years
  • Estate Tax exemptions will expire. In 2013, the level will be set at $1 million with a top rate of 55%
  • Budget encourages limitations on tax expenditures for those earning over $1 million, but the Democrats do not specify which ones.

Corporate Taxes

Democrats have mirrored the framework introduced by president of Obama.

  • Lower the Top Marginal tax rate for corporations
  • Close certain loopholes (Details Not Specified)
    • Includes preferences for certain oil and gas exploration
    • Restrictions for corporations who move jobs over seas

Discretionary Spending:

  • Replace all 9 years of scheduled sequestration cuts to annual budgeted amounts, caps would mirror the Budget Control Act
  • Mandate that all spending for Overseas Operations is ended after FY 2014. Any remaining expenses would have to be allocated to the defense discretionary cap
    • For reference the President has allocated spending to be capped at $40 billion a year for 10 years

 Budget Enforcement

  • “PAYGO” will be reinstated which means any spending increases will be offset by tax cuts and any tax cuts will be offset by spending increases

*For a comparison of President Obama’s, Representative Paul Ryan’s, Bipartisan Policy’s and Simpson Bowles’s budget proposals click here

 

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