So is it a GOOD DEAL?
So what’s in this new “deal”?
According to the Powerpoint released by the Speaker’s office (CLICK HERE), it is a good deal. Response from both sides of the aisle have been mixed though, and most are waiting to read the real bill. They better be quick though as they will likely have to vote on it tomorrow.
Here’s what seem like good things:
- No Tax Hikes are included in the bill
- Cuts more over 10 years than the debt ceiling is raised
- Cuts and caps discretionary spending
- First “tranche” is $900B increase now, second “tranche” needs to be acted on by Congress next year
- Second “tranche” of $1.5T enacted if BBA sent to the states by year end OR joint committee cuts spending (by Thanksgiving) more than another $1.5T
- Triggers require across the board cuts if caps are violated
- According to the Powerpoint, it makes it “impossible” for the Joint Committee to increase taxes
Some not so good things (not all mentioned in the Powerpoint):
- Spending cuts are back loaded – first two years are pocket change.
- Requires 12 member bipartisan “joint committee” to agree on second round of cuts – if no agreement, automatic cuts are applied to Medicare (doctors and providers get cut – not beneficiaries) and Defense. Medicaid, Social Security, Veterans and military pay are exempt
- Powerpoint claims that committee cannot raise taxes, yet one analysis implies that the Bush tax cuts will be allowed to expire – effectively Obama’s tax on “the rich”. Will have to wait and see on that one.
So is this a good deal or not? My thought is that we may have been snookered again, just like with the continuing resolution earlier in the year. The democrats orchestrated this to be resolved at the last minute and the House will be asked to vote on it without having even a full day to consider the ramifications. Washington at its UGLIEST!
I withhold my judgement until I can read the bill. So should you.