After hearing Speaker John Boehner (R-OH) has added a Balanced Budget Amendment to his 3.0 debt limit bill, we learn a few particulars of Reid’s new ‘Plan C.’ Plan C is a Democrat bill that will trigger tax increases under some conditions. If Democrats get their way on the second round of a debt ceiling increase in 2012, Democrats “want to make sure that if Republicans walk from those talks, there mght be some tax increases that would kick in automaticallly — giving the GOP incentive to stay and work out a deal. ” This refers to negotiations of the Super Congress, meaning a committee of three Republicans and three Democrats. So, that is fairly terrifying. Republicans “walking” could simply mean disagreeing. How do they think they can get this through the House? And what about another push for more debt limit extensions until 2013? Update 1:27 pm CDT: Rush Limbaugh has a copy of Boehner’s Balanced Budget Amendment and says there are no (none) specifics in the proposed Amendment, which means “massive tax increases,” could be attached.
These Democratic officials see three steps to a compromise and they stress that the White House believes the first two steps are not necessarily that difficult, while the third one — the trigger mechanism — will be the flashpoint.
Part One of the emerging compromise involves the spending cuts in the Boehner and Reid plans, which the Democratic officials note have some overlap and can be bridged relatively easy.
Part Two involves the fact that both Boehner and Reid want to set up a special committee of Congress to come back with a second round of spending cuts — and possible tax changes — in a few months. While there are differences to their committees, this is another area where the Democratic officials see a lot of overlap.
Part Three is the sticking point, and that is what “trigger” mechanisms are in place to incentivize action by this special committee to make sure it is not just yet another Washington commission that ends up doing nothing.
Politico has a headline saying ‘House Stalled, Harry Reid made his move.’ After doing nothing, this is something?
The Fox report says unnamed Democrats are working behind the scenes with Reid on Plan C. How do they think they will get this through the House? Good grief!