After a grueling, all-night debate that ended close to 5 a.m., the Senate on Saturday adopted its first budget in four years, a $3.7 trillion blueprint for 2014 that would fast-track passage of tax increases, trim spending gingerly and leave the government still deeply in the debt a decade from now.

The 50-49 vote sets up contentious — and potentially fruitless — negotiations with the Republican-dominated House in April to reconcile two vastly different plans for dealing with the nation’s economic and budgetary problems. No Republicans voted for the Senate plan on Saturday, and four Democrats — Mark Pryor of Arkansas, Kay Hagan of North Carolina, Mark Begich of Alaska and Max Baucus of Montana — also opposed it. All four are Red State Democrats up for re-election in 2014.

The Senate plan includes $100 billion in upfront infrastructure spending to stimulate the economy and calls for special fast-track rules to overhaul the tax code and raise $975 billion over 10 years through legislation that could not be filibustered. Even with that tax increase and prescribed spending cuts, the Senate plan would leave the government with a $566 billion deficit in 10 years, and $5.2 trillion in additional debt over that time.

Continue reading →