Frank Calls for Major Defense Cuts, 'Eventual' Tax Hike
Rep. Barney Fag Frank (D-Mass.) said Democrats will push for a stimulus package after the November election, and called for a package reducing defense spending by 25 percent while saying Congress will "eventually" raise taxes.
Frank told the editorial board of the SouthCoast Standard-Times that he wanted to reduce defense spending by a quarter, meaning the United States would have to withdraw from Iraq sooner.
"The people of Iraq want us out, and we want to stay over their objection," he said. "It's extraordinary."
Frank also said the post-election stimulus package will focus on spending for building projects, extending unemployment benefits, and further supporting states' healthcare costs. "We'll have to raise taxes ultimately," Frank said. "Not now, but eventually." Frank told the Standard-Times that if Democrats cannot secure the votes they need in November, they will try again in January, when they will likely have stronger majorities in the House and Senate.
Frank, the Chairman of the House Financial Services Committee, was an instrumental figure in engineering the bailout legislation to the U.S. financial industry, and indicated a new package may seek to ameliorate fears about investing. "The psychological problem is even worse than the real problem," Frank said.snip