Senate Democrats Mull Tax Increases

Senate Democrats, upset with all the Republican-inspired spending cuts they will have to accept in the budget for the rest of fiscal 2011, are hoping to push back with tax increases in the 2012 budget, The Hill reports.

Democrats want to take a leadership role on the budget, instead of reacting to Republican initiatives. They plan to propose higher tax rates for millionaires, companies that shift factories abroad and rich people who make charitable contributions.

Debate on the 2012 budget will begin next week, when House Republicans are expected to outline their budget proposal. “I’m picking up that the administration will take its stand on the 2012 budget. The 2012 budget will have to have revenue raisers and mandatory cuts and hold the line on discretionary spending,” a senior Democratic senator told The Hill.