Skip to comments.Reid changing debt-ceiling plan to woo Republicans
Posted on 07/30/2011 8:22:43 AM PDT by Ernest_at_the_Beach
After yesterdays embarrassing plea to Mitch McConnell to save him from a cloture vote, Harry Reid went back to the drawing board. The Hill reports that Reid has altered his plan to raise the debt ceiling by borrowing more from the plans of McConnell and John Boehner, hoping to shake loose enough Republicans to get past the procedural hurdle:
The biggest change is that Reid would give the president almost unilateral power to raise the debt limit, borrowing an idea introduced by Senate Republican Leader Mitch McConnell (R-Ky.).
Reid would have President Obama request a $2.4 trillion debt-limit increase in two installments of $1.2 trillion each. The requests would be subject to congressional resolutions of disapproval, but these would do little to restrict the president.
Obama could veto any resolution of disapproval, and it would take a two-thirds vote in both chambers of Congress to override him.
According to a Senate Democratic aide, Reid also increased the total level of spending cuts from $2.2 trillion to $2.4 trillion, in part by using the January baseline a budget maneuver House Speaker John Boehner (R-Ohio) used on a previous version of his debt-limit plan. The January budget baseline does not count cuts Congress implemented in legislation passed this spring to avert a government shutdown.
The McConnell mechanism wouldnt stop Obama from raising the debt ceiling limit in the next installment, but Republicans might be more inclined to see that as a bug rather than a feature by now. The cuts such as they are would come up front, with the possibility for getting more cuts down the line. Obama would have to raise the limit himself, and Republicans in both chambers would be able to vote against it, forcing Democrats to own the hikes. Its not pretty, but it would set up the debate in 2012 as well as can be expected for the GOP at this point.
Reid also is rumored to be offering a vote on a balanced budget amendment as a sweetener for Republicans in the Senate, although not requiring passage. Thats also a good development for the GOP. A properly written amendment would force Congress to control spending rather than raise taxes by limiting the federal budget to a constant percentage of GDP. If Democrats vote such a plan down, its yet another point for the 2012 debate.
However, according to The Daily Callers Amanda Carey and the Republicans on the Senate Budget Committee, the Reid plan has a big and unpleasant surprise for Republicans on taxes. Reids figures rely on current law and current law has all of the Bush-era tax rates expiring and rising to their previous levels. It also assumes that Congress wont provide a patch for the AMT:
Reids proposal includes a provision that deems budget resolutions for fiscal years 2012 and 2013, but Senate Democrats have not yet produced a 2012 budget proposal, much less one for 2013.
Within those anticipated budget resolutions lie the tax increases, according to the analysis, and here is where it gets tricky.
When the Congressional Budget Office scores a proposal, it uses either current policy or current law as its baseline. Reids bill is based on current law, which assumes certain tax breaks will expire according to pre-determined scheduled. That is a big deal.
The 20012003 Bush tax cuts are set to expire at the end of 2012. And some business tax breaks, death tax cuts, and the patch for the Alternative Minimum Tax expire at the end of 2011. Reids proposal assumes that Congress will not act to renew or extend those expiring tax breaks.
Total tax hike over 10 years, according to the GOP analysis? $3.8 trillion. And those would not just be tax hikes on the wealthy, either. Those tax hikes would hit the middle class like a freight train, both on basic rates and the AMT creep that Congress has parried for years. If this analysis is correct, Reid either wants to hit the US with the biggest tax hike in its history, or hes offering bogus deficit reduction that will never occur.
If this sounds like a bad deal to you, keeping in mind what Tina wrote yesterday as well, then it just shows that youre paying attention. It could get worse, though, as this Star Wars parody shows:
I was actually looking for the original clip when I came across this one which describes the situation far better. Who knew Lando Calrissian was a Tea Party supporter?
Haven’t missed it, but I remember 1994...
LMAO... “this deal is very fair, and I’m happy to be a part of it.”
- also, thanks for the ping, Ernest
Naw, the Constitution is only a few pages. Use the Obamacare bill.
Our best hope is for total gridlock extending through Nov. 2012, followed by a landslide of disgust by the rational people of America. The trick will be getting the truth understood by those rational types through the burgeoning brown cloud put in our atmosphere by the MSM!!!
God save America, please!!! (and BLEEP the traitorous MSM)
I put up a link to a MoneyMarket.com article yesterday, that reminded everyone who read it that the same exact "debt ceiling" increase "crisis" popped up during Dwight D. Eisenhour's presidency. Congress wouldn't pass it then and the Treasurery Dept. liquidated enough of the then vast gold reserves with the central bank to pay all the bills for over a year!!!
Even if our Federal Gold Reserve is diminished today, what we have is based on $40/ounce prices and with the price/ounce now at over 1600/oz, it would still save us from mistakes induced by panic mongers in the three branches with the media megaphone blaring BS all over all of us!!!
Here’s the link to the link I posted yesterday and referred to just above:http://www.freerepublic.com/focus/news/2755750/posts?page=5#5
If you can handle seeing that...watch for a replay on CSPAN...
The only thing hurtful about Ryan's proposal (It's not a bill yet as far as I know) is that those under 56 be put on a wide choice of Medicare Advantage Plans which I have been enrolling greatful senior clients in for the past 5 years!!!
That's FAR from deleting 500 billion from Medicare. It is rather providing private sector choices for future seniors, which those worshipping at the public sector alter abhor!!!
OK back to CSPAN...interesting detail in the Hot Air article...see link just above.
C-SPAN 2 in the Senate right now (live)... Some really good speeches by Coburn and Sessions. Especially Sessions!!!
Don’t you think this is wonderful? This is the plan we’ve all be waiting for! We should all shout for joy! Our country is saved! sarc
‘Your crap sandwich is served sir.’