We are likely to see a short term debt limit extension attached to a military construction appropriations bill, according to National Journal. No way to know the spending cuts will be made. Defense spending is in Democrat crosshairs. We reach the supposed-benchmark of $4 Trillion in cuts, only if the Super Congress decides we do. Is Senator Mitch McConnell’s plan to let the President raise the debt limit at his discretion back on the table? See below. See an update below.
President Obama has said he would only sign a short-term extension (days, not weeks) if it were linked to an extension of borrowing authority that lasts beyond the 2012 election.
✪ $2.8 trillion in deficit reduction with $1 trillion locked in through discretionary spending caps over 10 years and the remainder determined by a so-called “Super Committee.”
✪ The Super Committee must report precise deficit-reduction proposals by Thanksgiving.
✪ The Super Committee would have to propose $1.8 trillion in spending cuts to achieve that amount of deficit reduction over 10 years.
✪ If the Super Committee fails, Congress must send a balanced-budget amendment to the states for ratification. If that doesn’t happen, across-the-board spending cuts would go into effect and could touch Medicare and defense spending.
✪No net new tax revenue would be part of the special committee’s deliberations.
Assuming the Balanced Budget Amendment will first be voted upon before sending to the states for ratification, don’t you think the Senate will vote it down?
“No net new tax revenue….” Any guesses that that means?
In the past few days, the rumor was that if anyone walks away from the Super Congress negotiations, a “trigger” will automatically begin tax HIKES. Does that refer to the “no net new tax revenue?”
UPDATE 8-1-11 – Bill has now been signed-off on by Boehner and Reid: Jimmie Bise at The Sundries Shack has the details of the plan both Boehner and Reid signed-off on. He has spent some quality time with those details and lays-out what he believes will happen.