CBO confirms that debt-ceiling plan would cut $2.1 trillion

Los Angeles Times ^ | August 1, 2011, 11:25 a.m. | Michael Muskal

[RC one]

The nonpartisan Congressional Budget Office on Monday confirmed that the debt-ceiling compromise now slowly working its way through a political minefield would cut deficits by at least $2.1 trillion over 10 years.

The finding, reported in a letter to Speaker John A. Boehner (R-Ohio) and Senate Majority Leader Harry Reid (D-Nev.), is fresh ammunition for supporters of the plan in the face of conservative opposition that the spending cuts are too small. Liberals are also unhappy, arguing that Democrats are caving in to the GOP by not insisting on raising more revenue by closing tax loopholes on the richest.

According to the budget office's analysis, the compromise includes an immediate spending savings of $917 billion, about the same amount proposed by Boehner last week. Using Boehner's number might help push the overall package through the House, which is controlled by Republicans but where conservatives led by the "tea party" movement are unhappy with the overall number.

The second step in the process would come from the Congressional Joint Select Committee on Deficit Reduction, a special congressional committee that would be mandated with finding $1.5 trillion in spending cuts. If the committee fails to find that amount, there would be an automatic trigger chopping $1.2 trillion.

"CBO estimates that the legislation -- apart from the provisions related to the joint select committee -- would reduce budget deficits by $917 billion between 2012 and 2021," according to the letter to the congressional leaders. "In addition, legislation originating with the joint select committee, or the automatic reductions in spending that would occur in the absence of such legislation, would reduce deficits by at least $1.2 trillion over the 10-year period. Therefore, the deficit reduction stemming from this legislation would total at least $2.1 trillion"

[Liz]

CBO: $120 trillion: The shocking true size of our nation's debt
Michael D. Tanner is a senior fellow at the Cato Institute.
OP-ED NY POST, 6/26/11

EXCERPT The CBO released a new report this week showing that the federal government’s publicly held debt would top 101% of GDP by 2021, more than the value of everything produced in this country over the course of a year. By 2035, the publicly held debt, CBO says, could top an almost unfathomable 190% of GDP. And that was the good news. The federal government actually has three different types of debt.

(1) Debt held by the public, the type of government bonds that you — or the Chinese government — might own. Growing levels of publicly held debt can drive up interest rates in the long-run, and may already be choking off interbank lending.

(2) There is “intragovernmental” debt---debt that the federal government owes itself, such as to the so-called Social Security Trust Fund. Intragovernmental debt exceeds $4.6 trillion. The good news here is that it is not projected to grow much ..... because both SSS and Medicare are already running deficits — there’s nothing left to steal.

(3) "Implicit govt debt”.......unfunded obligations of programs such as Social Security and Medicare — that is owed in benefits in excess of the amount of taxes that they expect to take in.

-- SNIP long read--

http://www.nypost.com/p/news/opinion/opedcolumnists/trillion_the_shocking_true_size_tOxcrobUBUup9IEW3vQAhJ#ixzz1Q MwnRbMjall

Here's a graph that shows how Obama "Stimulated" the Economy------with run-away spending.

Now the US Treasury and HHS entries must be seen in this context. Ohaha's
then-COS---the power-mad Rahm Emanuel---took control of the US Treasury, took
over the census, and put his brother in charge of Medicare/Aid billions and O/Care
billions. Can you say offshore accounts? Govt fraud? Money laundering? Illegal
conversions of govt monies?

[donhunt]

Who the hell in their right mind would believe anything from any of these thugs in Washington, DC.
I’m at the point I don’t trust any of them.

[MulberryDraw]

immediate spending savings of $917 billion

over 10 years but virtually nothing between now and the end of Obama's term. Sheesh.

[TSgt]

The cuts are illustrated by the blue drop in this graphic.

[Peter from Rutland]

Obama is in full re-election mode right now. Everything is to that end or secondary according the ‘White House Insider’. Give him credit, he was right on the debt deal, among other things.

[newzjunkey]

Rep. Louis Gohmert (R-TX) speaking on Hannity's radio show (Aug 1, hour 2, 2nd quarter hour) says he got a private commitment from Boehner (and Paul Ryan who Gohmert expects to be on the Select Committee) to bring a *critical* change to a vote.

That change will do away with baseline budgeting (with its 7.5% automatic increases) and move to zero-base budgeting.

With zero-base budgeting all departments start at $0 each budget year and must justify the full budget request.

If passed it would be GAME-CHANGING. That's a bill to look out for this year.

The vote will put Dems & RINOs on record for wanting the status quo of automatic increases.

Gohmert says Ryan supports the change and Boehner said several times publicly last week it's a budgeting change he'd like to see happen.

[Terry Mross]

Didn’t take the CBO long to fall in line, did it?

[Pessimist]

“the compromise includes an immediate spending savings of $917 billion”

Provided by “immediate” you mean 10 yrs, most of which you cannot control.

[Terry Mross]

boner would “like” to see that change.

If this were to happen, it would have plenty of senate support.

[YHAOS]

"The nonpartisan Congressional Budget Office on Monday confirmed that the debt-ceiling compromise now slowly working its way through a political minefield would cut deficits by at least $2.1 trillion over 10 years."

That's no more than 14% of the cut needed.

[GailA]

“GOP lawmakers said the super committee could well recommend a rise in taxes, which would be passed by the House.”

*In addition, financial experts warned the U.S. credit rating was still likely to be downgraded, as figures revealed the U.S. has entered a double-dip recession and the Dow Jones average today fell to a level barely above the point indicating growth. *

“would be the largest increase in the debt limit in U.S. history by a margin of half a trillion dollars”

http://www.dailymail.co.uk/news/article-2020959/US-debt-ceiling-crisis-Obama-Boehner-face-backlash-fudged-minute-deal.html

[PiperShade]

Once again our masters are promising to save the dimes while spending dollars to do so. >PS

[Grammy]

If this is true (a chance to end baseline budgeting) I might accept what has been worked out... I figure the cost of this bill is payment for the change that is necessary.

[Chode]

only possible if it doesn't go up in the next ten years... and that is NOT possible

[LibLieSlayer]

They are counting on the Bush tax cuts to sunset and they will... that is about 3 Trillion over 10 years... so do the math... this bill increases the deficit... not a CUT ANYWHERE IN IT!

LLS

[Blood of Tyrants]

Their numbers depend on the Bush tax cuts expiring next year.

[CodeToad]

Under what BS accounting consitions? Cuts from what they wanted to spend or actual cuts from what is spent today? NOTHING in the federal budget basis spending cuts on what is spent but what they want to spend.

Only in Washington DC can a person get a 1% raise but call that a “50% cut” if they wanted 2%.

[ml/nj]

The nonpartisan Congressional Budget Office ...

Anyone who thinks these folks are "nonpartisan" truly needs a mental examination. Surveys have shown, I think, that college professors and MSM types voted overwhelmingly for the Democrats. My guess is that these percentages would be dwarfed by any similar survey of the folks at the CBO.

ML/NJ

[sappy]

time to re-register as a republican to vote in the primary. this back stabbing won’t go un-noticed, GOP. then, back to independant.