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The Spectacle Blog
It appears that the debt ceiling negotiations have reached the stage at which the players who have leverage are working out a deal behind closed doors, and everyone else is listening in, or so the New York Times is reporting.
Jake Tapper has updated the situation for this morning:
Think of the negotations as a sliding scale, with all parties being asked how far they're willing to go.
The base level starts off with $1.5-1.7 trillion in cuts over the next decade, largely in domestic spending cuts and also from some mandatory spending programs (such as farm subsidies). These take the form of spending cuts and caps in spending to next year's budget (which the White House would be discussing anyway, since the FY2011 budget ends in a few weeks, at the end of September.)
The high end of the scale would be about $3.7 trillion in deficit reduction.
It's a complicated process as to how to slide up to that, but it might be easiest to think of it as roughly a 1:1 ratio in entitlement reforms (cuts) to tax reform (revenues), details to be determined later.
The two sides have also talked about possible "triggers" for if the deficit reduction targets aren't met: Obama is pushing for tax increases, while Boehner wants Obamacare's individual mandate on the table.
If those are indeed the terms of the discussions, I'd expect the final deal to be closer to the low end of spending cuts. Although entitlement reforms would be much more significant, Democrats are far less likely to agree to them. Meanwhile, asking Republicans to agree to billions or even trillions in tax increases is a bit much.
Of course, both sides are strenuously denying that any deal is in place or even likely. Republican House leadership just held a press conference to reinforce that point and accentuate their support for Cut, Cap, and Balance.
Last paragraph added.
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buckeyeman| 7.22.11 @ 10:37AM
The projected yearly deficit is about 1.6 Trillion dollars. Sleight of hand tricks like touting 3.7 Trillion (over ten years) will not solve the problem. I don't want to hear about "reductions" four, six, or eight years from now. I wan this year's budget balanced. The only way I can see to do that is to refuse to raise the debt ceiling. Everything else we all know is a lie.
RobS| 7.22.11 @ 10:57AM
A big AMEN to that. Entitlements must be cut deeply, especially medicare and medicaid. Obamacare must be repealed. Social security must be privatized so that each person has their own actual retirement account with their own damn money in it and nobody elses. Gut the EPA and NEA and other agencies that destroy us from within. Cut taxes on the people who create jobs and raise taxes on the 50% of our population that doesn't pay taxes AT ALL right now so that they'll start caring how we spend money. There's no easy path to getting all of this done so just DO IT. Right now and no excuses. Unfortunately other than Sarah Palin and Ron Paul I don't think any of the candidates have the guts to push for something like this and to take the flak from the lamestream media. And unfortunately Ron Paul isn't playing with a full deck so that leaves Palin.
TruthSayer| 7.22.11 @ 10:48AM
This deal will spell the end of the Republican party. How could the House Republicans elect such an idiot as Boehner to Speaker at such a critical time in history? Not only is he an idiot, but he is completely spineless as well.
Let me guess, kill the individual mandate and then Obamacare is OK? You idiot Boehner! You should put ALL of Obamacare on the table and say take it or leave it! You fool Boehner! You are a pathetic piece of crap and your name will be cursed forever after the collapse of the economy and the end of our Republic - both of which are coming sooner than the vast hoards of morons in this country could imagine.
WL| 7.22.11 @ 10:51AM
Yep, that's the truth alright...I have begun to prepare my mind for it...because there is no avoiding it.
The USS Titanic has already rammed the iceberg...
WL| 7.22.11 @ 10:49AM
Mr. Buckeyeman...you said the magic words....
"Everything else we all know is a lie." The biggest of those lies is about the "triggers"....of course the author really could have exposed those for what they are, but as usual, he didn't.....I can see it now...we agree to taxes that only happen if the spending cuts don't materialize......
Do we really have to guess how that movie plays out??????
If some idiots can't see the TRAP in that deal...They should really stop voting...PLEASE
Clint| 7.22.11 @ 11:12AM
Dr.Ron Paul,
"The debt ceiling law, passed in 1917, enables Congress to place a statutory cap on the total amount of government debt rather than having to approve each individual Treasury bond offering. It also, however, forces Congress into an open and presumably somewhat shameful vote to approve more borrowing. If the new Republican majority in the House of Representatives gives in to establishment pressure by voting to increase the debt ceiling once again, you will know that the status quo has prevailed. You will know that the simple notion of balancing the budget, by limiting federal spending to federal revenue, remains a shallow and laughable campaign platitude."
The Tea Party Rebellion Escalates.
Rise Up.
Bill Hussein O'Stalin| 7.22.11 @ 11:26AM
A default might not be so bad. Whether it's default or not, one thing is clear.
The Ruling Class in Washington, D.C. is incapable of progress, only engaging in deception and hubris.
It's already leaking out that 1.3 trillion of the 1.5 trillion in cuts is phony, depending on accounting gimmicks and imagination. For instance 300 billion would be in imaginary interest savings.
That means there will be a 2 trillion increase in spending, while only 200 billion in cuts may materialize. Maybe not.
It's beyond disgusting.
Mimi| 7.22.11 @ 12:31PM
If ...CUT, CAP & BALANCE DOES not pass the Senate it tells us a lot. we will pick up the pieces and ride it out , until the Democrats are replaced in 2012....From top down. The Mean corruption of Harry Reed to not allow even a discussion is proof of his playing ball with Obama. The people will have no representation here at all!