Posted on 07/31/2011 8:54:11 AM PDT by Qbert
Very late on Saturday, multiple reports sketched out the framework of a debt limit compromise President Obama has struck with Senate Minority Leader Mitch McConnell (R-KY).
As noted here, the issue under contention was the design of a so-called "trigger," -- a penalty written into the bill meant to encourage Congress to pass further bipartisan deficit reduction legislation, authored by a new Special Committee, later this year. Here's what they've reportedly come up with, pending approval from Congressional Democrats and Republicans.
From ABC News, the key detail: "The special committee must make recommendations by late November (before Congress' Thanksgiving recess). If Congress does not approve those cuts by December 23, automatic across-the-board cuts go into effect, including cuts to Defense and Medicare. This 'trigger' is designed to force action on the deficit reduction committee's recommendations by making the alternative painful to both Democrats and Republicans."
The Medicare cuts would supposedly fall on Medicare providers, not beneficiaries. The trigger would also include a vote on a Balanced Budget Amendment -- but no requirement that it be sent off to the states.
One source briefed on the negotiations confirms that the ABC story is correct "on the key points." A similar piece in National Journal suggests the Special Committee would not be allowed to reduce the deficit by raising new net tax revenue. The source disputes that notion, as does the ABC report.
On CNN's State Of The Union, McConnell sought to reassure conservatives that the deal includes no tax increases -- though did not specifically address the scope of the Special Committee. "There are no tax increases in this bill," he said. "There will be no tax increases in this proposal." Emphasis added.
Also on CNN, Sen. Chuck Schumer (D-NY) said the final trigger must include incentives that don't simply allow Republicans to draw a line in the sand over revenues. "What is the sword over the Republican?" Schumer asked.
Well it has to be equal -- the one thing we are certain of, it has to be of equal sharpness and strength. The preference would be some kind of revenues, on wealthy people, on tax loopholes that would be in that. But another alternative, possible, being discussed, no agreement has been reached, would be defense cuts of equal sharpness and magnitude to domestic cuts.In the past, when the trigger has had significant defense cuts, it's brought the parties to the table and they've come up with a balanced agreement that had both revenues and cuts.
Obama briefed Congressional leaders about the framework late last night.
But a senior White House official urged caution. As of early Sunday morning, the official said, "major details" of the agreement were still being discussed, and the nature of the trigger described in these initial reports is incorrect.
We'll know more very soon. The idea of this sort of penalty is to constitute policy both parties agree is bad -- that way they don't simply choose to punt on a larger deficit reduction bill. The idea here is that the threat of Medicare cuts will focus Democrats and the threat of defense cuts will focus Republicans, and they'll agree to fiscal policy that includes the entitlement cuts Republicans want and tax increases Democrats want.
Republicans have insisted that the debt limit should not be raised by any more than the amount by which Congress agrees to reduce the deficit. This framework would allow Republicans to consider future cuts as "baked in" and thus to agree to raise the debt limit through 2012 -- a key Democratic demand.
(Emphasis added)
"This is not a good deal and could be a terrible one because the Democrats will not hesitate to play tax hikes off of national defense, which has already absorbed hundreds of billions in cuts. If in four months the six Democrats refuse reforms in entitlements and insist on tax hikes, the six Republicans will be facing the choice between gutting an already overstretched and underfunded military or accepting tax hikes."
It’s amazing how the RINOs fall for things like this every single time. It’s like their own version of Hopeychange.
A “sword over the republicans”. You can see what schumer cares about.
Cuts to medicare providers? Providers are dropping out of medicare so fast now it’s getting harder and harder to find a doctor who will accept new medicare patients. And many are dropping the patients they have. Plus under obama care the premiums are going up.
Don’t be to quick to judge. I think this thing is going to fall apart and Obama will go on National TV to blame the “Right”. I think he wanted that all along.
In a $687 billion Defense budget there is at least 10% that can be cut. Conservative are never going to win this war if they fall into this old DC trap.
DC always avoids making any serious spending cuts by pitting one interest group against the other. Defense Hawks against Entitlements, Domestic spending vrs security spending etc.
The only way to win this Budget battle is to take these tactics away from DC. EVERYTHING has to be on the table for at least some reduction.
The Sun rises in the East, the Rats play the GOP like a fiddle....
Cuts need to be made in all departments. The answer to the overstretched military is to bring most of them home and make other countries pay for their own defense. Also, there has to be an end to the revolving door of retired military officers who become lobbyists for defense contractors and the lavish spending on programs the military doesn’t want or need.
I’m afraid there are constituents for every bit of spending in all departments. Democrats and Republicans get elected for handing out taxpayer money. We are going the way of Greece.
Dear Sen Schumer, CHUCK U.
Why all the whining? The Senate is irrelevant - this will never pass the House.
Get real.
No, you haven't got it.
Well, let's see...hmmmm...both parties have been pushing a multi-TRILLION dollar increase in borrowing and spending from day one, and they're going to pass a multi-TRILLION dollar increase in borrowing and spending.
Where's the "compromise"?
there will be no tax increases in this proposal....the special committee set up by the proposal will come up with those.
>> It’s amazing how the RINOs fall for things like this every single time.
It’s Conservatives that fall for the lies perpetuated by the RINOs.
I don’t see anywhere in that article where it says taxes WILL go up. From what I read of the proposed deal there is a partial debt ceiling increase now, and if the committee can’t agree on cuts by Thanksgiving there is no additional debt limit increase. I think it’s a pretty good deal overall. I don’t care if Obama gets something thru the election. Let him. He’s going to continue to screw things up anyway. This is our best shot at taking the senate and the White House in 2012 and then we can continue to reduce spending at that point.
That is we have a good chance to take the senate and the white house if conservatives don’t pout and sulk and stay home in 2012 because we didn’t get 100% of what we want right now.
Brilliant move, the rinos are dancing in the streets, boner is the Grand Marshall of the parade.
RINOs didn’t fall for anything. They planned this along with Obama and Reid.
///
great posts.
and honest republicans, were too trusting again.
and once again surprised, when Lucy moved the football again.
(except for the VERY few, like DeMint and the smart 16...)
The military is not underfunded, they wast money like they were pumping it out a twenty inch hose.
If he wants to raise revenue eliminate the Earned Income Tax Credit!
Welfare cases shouldn’t have ever had it anyway!
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