Reporting from Washington Facing the uncomfortable reality that the federal government’s 2011 budget shows record levels of red ink, congressional Democrats may resolve the politically thorny situation by simply refusing to pass a budget resolution this election year.

With voters in no mood to hear about Washington’s $1.3-trillion deficit, some moderate and conservative Democrats say they would rather sit this one out. They have found common cause with liberal colleagues who don’t want to pass spending cuts, especially while the economy is still struggling.

“I’m not going to vote for anything with that magnitude [of deficit],” said Rep. Gerald E. Connolly (D-Va.), a freshman running for reelection in the fall.

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Democrats Earmark Ban Largely Cosmetic

House Democrats’ moratorium on earmarks would not have prevented the Bridge to Nowhere, the Airport for No One, or some of the other recent infamous examples of spending.

Democrats’ new ban on earmarks to for-profit companies is projected to reduce earmarks by at least 1,000. Yet, the ban would only apply to appropriations bills so thousands of earmarks in authorization, tax and tariff, as well as transportation measures would continue unabated under the Democrats’ plan.

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In all, Obama would increase taxes on some businesses and wealthy individuals by a total of about $1.4 trillion over the next decade, while cutting taxes for middle-class workers and other businesses by about $330 billion. The bottom line: Tax receipts would increase by about $1.1 trillion over the next decade.

Congressional Democrats praised most of Obamas initiatives, but their lukewarm response to some of the tax increases suggests a tough fight for the administration. Obamas proposal to increase taxes on international businesses would be better addressed as part of a package overhauling the entire tax system, said Sen. Max Baucus, D-Mont., chairman of the tax-writing Finance Committee.

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Obama’s Four Flimsy Budget Cutting Ideas

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