Politicians last night announced the framework of a deal to increase the debt limit. In addition to authorizing about $900 billion more red ink right away, it would require immediate budget cuts of more than $900 billion, though “immediate” means over 10 years and “budget cuts” means spending still goes up (but not as fast as previously planned).
But that’s the relatively uncontroversial part. The fighting we’re seeing today revolves around a “super-committee” that’s been created to find $1.5 trillion of additional “deficit reduction” over the next 10 years (based on Washington math, of course).
And much of the squabbling is about whether the super-committee is a vehicle for higher taxes. As with all kiss-your-sister budget deals, both sides can point to something they like.
Here’s what Republicans like: The super-committee must use the “current law” baseline, which assumes that the 2001 and 2003 tax cuts expire at the end of 2012. But why are GOPers happy about this, considering they want those tax cuts extended? For the simple reason that Democrats on the super-committee therefore can’t use repeal of the “Bush tax cuts for the rich” as a revenue raiser.
Here’s what Democrats like: There appears to be nothing in the agreement to preclude the super-committee from meeting its $1.5 trillion target with tax revenue. The 2001 and 2003 tax legislation is not an option, but everything else is on the table (notwithstanding GOP claims that it is “impossible for Joint Committee to increase taxes”).
Read More by Dan Mitchell
Photo Credit: Gage Skidmore Creative Commons
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Democrats always have one answer to the problem. Raise taxes. I am still waiting to see if they found that 500 Billion in waste that was suppose to be found to pay for the new Health-scare Bill.
TEA T=Taxed E=Enough A+ Already
QQ<<<<< me looking for 500 Billion dollars of waste.
Bachmann 2012 you go girl.
And she did not vote for this ridiculous debt bill yesterday. Now the is a leader.
Lets Change The Topic, Buckwheat, Yikeess, Mr Issa Said Fast And Furious Operation (Gun Runners) Was Known By Top Officals At The Justice Dept, The Imposter Pres Obama And Eric Holder And Misled Congress, Yikeess, A Phoney Debt-Ceiling Fits With This Duo Obama/Holder. God Bless America And Sarah Palin.
And our Politicians & the Media tell us what a good deal this is. IT STINKS. They didn't solve a damn thing. Obama can still spend, spend, spend, & they only made a tiny dent in fixing the problem. Our Reps in Congress, except for the newly elected Tea Party Members, are corrupt, worthless, liars.
Tea Party Patriots Do Not Worry With UnHonest John Kerry Another Lib Goon With That Splitted Tongue," Born To Lie "Another Great Book About The Leader Of The Free World, Yikeess, God Bless America And The Tea Party Patriots.