Posted on 07/26/2011 3:54:11 PM PDT by RummyChick
CBO: Boehner plan cuts deficits by $850B By Erik Wasson - 07/26/11 06:03 PM ET The Congressional Budget Office has told House Speaker John Boehner (R-Ohio) that his debt ceiling fallback plan will reduce the deficit by about $850 billion over ten years.
House GOP rank-and-file have been waiting eagerly for the score since they are worried the bill would not measure up to claims made about it by House leadership. Leadership on Monday said the bill would reduce discretionary spending by $1.2 trillion over ten years.
The CBO revealed the score in a Tuesday letter to the speaker.
The score is against the latest CBO baseline as adjusted to reflect the 2011 spending cuts deal between Congress and the White House that cut $38 billion in budget authority. Those 2011 cuts have ripple effects over the budget window.
The CBO has also determined that taking that earlier deal into account, the spending levels in the Boehner plan is a $1.1 trillion cut in the deficit.
Most of the effects of the Boehner plan come from caps it imposes on discretionary spending. Next year the cap is $1.043 trillion, a $6 billion drop from current levels.
Actual federal spending outlays in the ten-year period would be reduced by $710 billion relative to that March baseline, CBO says, if the discretionary spending caps in the Boehner plan are instituted.
Overall, savings in discretionary spending is cut $695 billion, mandatory spending is cut by $20 billion, and the savings in interest equals $135 billion.
CBO also looked at other more minor provisions in the Boehner bill. One would provide extra funding for Pell Grants to students and this costs $17 billion, while another would limit other student loans saving over $30 billion.
The Boehner plan is a two-step process whereby the debt ceiling would be raised before Aug. 2 and then again next year.
The CBO score reflects part one of the process, which grants President Obama the right to request a $900 billion increase in the debt ceiling, slightly more than the amount CBO says the Boehner plan cuts from combined deficits compared to the March baseline.
Boehner this spring said Congress would only raise the debt ceiling if spending cuts exceed the amount by which the debt ceiling is raised.
CBO does not assign a score to the second phase of the Boehner plan which would require a joint committee to come up with a plan to cut $1.8 trillion from the deficit by Nov. 23.
Falls far short of the 4 trillion in cuts demanded by S&P to avoid downgrade.
Nice work, Boner.
See you in the third world.
I have concluded today that the House Republicans are every bit as stupid as their Democratic counterparts.
They can’t seriously hope for anything better than the current proposal. They pass it now, the Senate and Barry0 get the blame for fallout when they turn it down.
This is their chance. Just stupid, stupid, stupid to turn it down.
Geez, stop spending and pay down the debt.
The Hill must have incorrect sources. Fox News just read the CBO’s statement and it said 1.1 or 1.2 trillion. Memory is failing me.
“The CBO has also determined that taking that earlier deal into account, the spending levels in the Boehner plan is a $1.1 trillion cut in the deficit.”
Has anybody told Boss Hogg (Haley Barbour) about this CBO scoring.
Has anybody told Allen West or Paul Ryan, who came out in support of this sham before the CBO scores came out? Both of them now have their asses hanging out for nothing. Adios Amigo’s.
A congresscritter (I was listening on Sirius, but didn't here who it was) was on Cavuto and said the Boehner's proposal actually only cut $6 billion and ended up ADDING $7 trillion to the debt!
JimPethokoukis James Pethokoukis
Maybe Boehner can rewrite bill and pack that extra $150b in cuts all into 2012
EWErickson Erick Erickson
The Boehner Plan: Phony Cuts, Slimy Procedures, Dangerous Ignorance redstate.com/mikehammond/20… via @redstate
Aaron_RS Aaron Gardner
In Aug of 2010 I suggested Pence for Speaker rather than Boehner. I bet a few people think I am less crazy now.
1 minute ago
And one of the funniest..that I can’t find at the moment.
If you want to kill Boehner’s deal just have Obama endorse it.
Read the tweets I posted. It depends on the baseline used.
So the CBO says most of the savings from Boehner’s plan come down in the first year to the $6B saved on discretionary spending—and the first year is pretty much all the real power this congress has to influence.
$1T equals approximately $6B.
That’s even worse than the $28B that came down to $300M in the CR.
And I don’t care what anyone says about Boehner being limited by what the Senate and Barry will agree to: he’s trying to pass this off as a trillion dollars in savings up front, over $2T in total and he’s out there crowing about how he’s guaranteed as much in cuts as he’s allowing in the increase in debt.
Complete and shameless lies. I hope he loses his leadership position before the end of the year.
It re-inforces the belief that it really is the DC Elites on both sides vs America.
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Not yet! The Tea Party congresscritters are holding to their promise of decreasing spending and are causing headaches for the establishment Republicans. Good news for us!
The Hill is a liberal rag that wants to split the GOP. If you read the entire article it says
“The CBO has also determined that taking that earlier deal into account, the spending levels in the Boehner plan is a $1.1 trillion cut in the deficit. “
Boehner said on Sean Hannity that this would just cover the first $1 Trillion in debt hike this year. They would have to do this again next year.
I am sick and tired of the so called conservatives on FR who quote crap like AP, Politico and The Hill to bash GOPers.
I heard the interview . And when Rush pressed him on it..he said something like..now you are getting into budget details and glossed over it.
He said “FRANKLY” too many times.
Well, the Hill report kind of says the same in the middle of everything:
The score is against the latest CBO baseline as adjusted to reflect the 2011 spending cuts deal between Congress and the White House that cut $38 billion in budget authority. Those 2011 cuts have ripple effects over the budget window. The CBO has also determined that taking that earlier deal into account, the spending levels in the Boehner plan is a $1.1 trillion cut in the deficit.
A 6 billion cut this year. Great job Boehner.
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