Politics

Brass Tacks: Facts About Each Debt Ceiling Proposal

Facts About Each Debt Ceiling Proposal

While talk about the debt limit negotiations has reached nearly all levels of American media, many are unclear about the actual proposals being made by each side.

Too many reports seem to focus on the politics involved without grappling with the actual assertions being put forward. The Blaze wants to give you a better idea about the plans on the table.

There are three primary options on the table — one plan presented by Speaker of the House Republican Rep. John Boehner, one from Democratic Senate Majority Leader Sen. Harry Reid, and the bipartisan Senate proposal from the “Gang of Six.”

Despite his prime time address last night, there is no official plan originating from President Barack Obama’s desk.

Speaker Boehner’s Plan:

  • Two-stage plan to raise the debt limit by August 2 and then again early next year
  • Would reduce future discretionary spending by $1.2 trillion over 10 years and grant an immediate debt increase of $1 trillion.
  • Would set up a bipartisan committee of House and Senate members to work on finding $1.8 trillion in further deficit reduction over 10 years, either through more spending cuts or tax increases– from tax code reform, Medicare and other benefit programs, or anywhere else in the budget. The committee would have until November 23 to come up with its recommendations. Congress would have to hold an up-or-down vote by December 23.
  • If Congress approves the additional savings, President Obama would be allowed to ask for a further debt-limit increase of $1.6 trillion, enough to cover the nation’s borrowing needs through the November 2012 elections. Congress could vote to disapprove the request, but Obama could veto that disapproval.
  • Automatic cuts would also kick in if lawmakers spend more than envisioned in coming years.
  • Would require both the House and Senate to hold votes on a balanced budget amendment to the Constitution.
  • Discretionary spending would come in at $1.043 trillion for the fiscal year that starts on October 1 — a $6 billion cut from this year’s levels, but $24 billion above the level envisioned by House Republicans’ earlier budget plan.

Sen. Reid’s plan from Senate Democrats:

  • Would pair $2.7 trillion in cuts with a debt-ceiling increase of the same size, large enough to last through the November 2012 elections.
  • Would not raise taxes or change major benefit programs like Social Security and Medicare, but spells out specific cuts for military and security programs. Would count $400 billion in savings from reduced interest payments, and an anticipated $1 trillion reduction in war spending would count as savings as well.
  • Would cut $100 billion to benefit programs and other spending that normally lie beyond the reach of the annual budget cycle, including cuts to tax enforcement and healthcare fraud reduction programs, Fannie Mae and Freddie Mac and funds from reduced crop subsidies.
  • Like Boehner, would set up a joint committee to find additional savings. The committee’s findings would get an up-or-down vote in Congress by the end of the year.
  • Would cut $1.2 trillion from discretionary programs over 10 years. Some democrats had been pushing for a lower figure, around $900 billion.
  • Estimates a discretionary level of $1.045 trillion for the coming fiscal year, only $2 billion more than the Boehner plan.

Gang of Six Plan from Democratic Whip Dick Durbin and Democratic Sens. Mark Warner and Kent Conrad, and Republican Sens. Saxby Chambliss, Tom Coburn, and Mike Crapo.

Although they have not formulated their own plan, the Washington Times reported today that Rep. Jim Jordan and other conservative House Republicans, many allied to the tea party movement, said they would prefer the Senate vote on the debt increase the House passed last week. That plan includes deeper spending cuts and requires both chambers to approve a balanced budget amendment and submit it to the states for ratification before any debt increase happens.

Comments (12)

  • DrMaddVibe
    Posted on July 27, 2011 at 1:13pm

    All they’re doing is kicking the can further down the road. They’re not going to fix anything. They‘re wanting more but they’re not taking away the “retirement benefits” from the House and Senate. Take THAT away! No pensions and no raises. Take away ALL their pay too! It’s supposed to be about serving your nation with honor and dignity, not lining your pockets with the K Street cash!

    Our Founding Fathers would be grabbing the rifles off their mantels over what’s going on now. Oh, wait a minute that’s right they did…when they were taxed a measley 13%!

    We deserve the leaders we elect and we elect the leaders we deserve. America better wake up!

    Report Post »  
  • bsone
    Posted on July 27, 2011 at 11:00am

    How about when the debt ceiling is not increased, some of the checks not sent out include Congressmen/women, their staffs, Senators, their staffs, President and VicePresident and their advisors/czars. Wonder if that would get these folks off their asses?

    Report Post »  
  • chickster
    Posted on July 27, 2011 at 10:33am

    Subject:
    Fw: PROGRAMS NEEDING ELIMINATION! COULD STRAIGHTEN OUT THINGS!

    Subject:
    No more mess

    These
    are all the programs that the Republican House of
    Representatives has proposed cutting. Read to the
    end.

    Corporation for Public Broadcasting
    Subsidy. $445 million annual savings.
    Save America ‘s Treasures Program.
    $25 million annual savings.
    International Fund for
    Ireland
    . $17 million annual savings.
    Legal Services Corporation. $420
    million annual savings.
    National Endowment for the Arts.
    $167.5 million annual savings.
    National Endowment for the
    Humanities. $167.5 million annual savings.
    Hope VI
    Program. $250 million annual savings.
    Amtrak Subsidies. $1.565 billion
    annual savings.
    Eliminate duplicative education
    programs. H.R. 2274 (in last Congress), authored by Rep.
    McKeon, eliminates 68 at a savings of $1.3 billion annually.

    U.S. Trade Development Agency. $55
    million annual savings.
    Woodrow Wilson Center Subsidy. $20
    million annual savings.

    Report Post » chickster  
  • Simple Skeptic
    Posted on July 27, 2011 at 10:07am

    Did I miss the cut, cap, and balance plan?

    Report Post »  
  • BrendaB
    Posted on July 27, 2011 at 9:06am

    I think they ought to take Sen. Cobourn’s book of outrageous spending cuts that equalled $9 trillion dollars in wastefull spending . These were the ones discovered by the ‘Gang of Six’…….Crisis averted…..
    Does this not make more sense

    Report Post »  
  • ninja
    Posted on July 27, 2011 at 8:16am

    Like we needed any more evidence that the establishment republicans have to be booted out? Alan West needs to be Speaker of the House. Crybaby Nancy Boehner needs to be retired.

    Report Post »  
  • 2ndOpinion
    Posted on July 27, 2011 at 7:41am

    A ‘Debt’ is not a ceiling. Debt is a negative. It‘s a ’Debt Hole’. This raising of the so called ‘debt ceiling’ is in itself a tax! Digging our debt hole another $2.7T deeper will immediately be filled with more gov’t spending, which eventually has to be paid by a tax on the American people. And that’s only good enough to last to 2012 !?!?!? Give me a break. You can blow over $1.2T in one year with the stimulus package, but then you struggle to ‘cut’ $2.7T over the next ten years ?!?! You dimwits in Congress need to get your da** foot off the spending gas pedal and start applying some brakes. What part of ‘No more spending’ don’t you understand?

    Report Post »  
    • loriann12
      Posted on July 27, 2011 at 8:40am

      If your credit cards are maxed out, you have to lower the standard of living and only pay what is necessary. If this country defaults, it‘s Obama’s fault because he determines what gets paid each month. Don’t send money to foreign countries that hate us anyway, pull our troops out of other country’s business, quit being the world’s police and let the UN do it, quit funding ridiculous projects (like the spotted owl studies), make it harder to get welfare (so only those that actually want to work, but just can’t find it, get it and not people who are proud they don’t work for their money or are 3rd generation recipients). Make those in government high levels (congressmen and the president) pay for their own staff out of their pockets. I’ve said it before, it will make them more sympathetic to small business owners.

      Report Post »  
  • florida123
    Posted on July 27, 2011 at 7:40am

    DC business as usual…………both plans are just lip service by shady politicians whos only real concern is themselves and those that line their pockets……….Neither of these plans does a damn thing to secure the future of America for us or our children. 2012 just cant come fast enough!

    Report Post » florida123  
  • Fina Biscotti
    Posted on July 27, 2011 at 2:55am

    Fuzzy Math…………………….

    Report Post »  
  • cane247
    Posted on July 27, 2011 at 1:00am

    Does anyone recall “Voodoo Economics”? Well any plan that promises to cut money from future budgets deserves that label. These jabronies always seek to push the cuts 10-20 yrs down the road then, 10-20 years later, we see that nothing was ever really cut at all. Basically the Federal budget should never exceed 15-20% of GDP AS PRESENTLY DEFINED. I say “as presently defined” because that’s the other trick, redefine the benchmarks. Does your ruler have 12″ on it? Mine does, but politicians are magicians with semantics so they just redine what a inch is. Remember “that all depends on what the definition of ”is“ is”? Since future Congresses can not be bound by the actions of their predecessors, only a Budget Amendment will begin to address this mess. That doesn’t mean that a Harry Reid/Nancy Pelosi Congress can’t spend like drunken sailors. They can raise the taxes to “balance” the budget; but it doesn’t it makes them do it not just pass it along to a Republican house to take the beating. That’s why Reid/Pelosi never got a budget done with majorities in both Houses.

    The other chage need is an Amendment that forces Congress to live by whatever laws they make for the rest of us. No special retirement or health plans. No exemptions for any of them for anything. That might make them think twice before having the TSA strip search passengers or have bureaucrats decide who lives or dies. These jokers are not our Aristocracy and they should stop actin

    Report Post » cane247  
    • Laennec
      Posted on July 27, 2011 at 4:07am

      I agree with KANE247. I try to remind everyone why the deficit is a crisis right now. As was just explained, the budget keeps getting put off with “anticipated” spending cuts that never happen. Our leadership keeps quoting President Reagan. Public debt was 47% GDP in 86′ When Reagan became President. Then Democratic Congress rose to 52% by 1989. Public debt was 82% GDP in 09′ when Obama became President. Then Congress raised public debt to $14.77 trillion (Jun 2011) 100% of GDP. That is why it is a crisis now and not during Reagan years. We will get a credit downgrade if we don’t cut 4 Trillion say Standard and Poor. Do any of these proposals say 4 Trillion? I guess the American people didn’t get through to Washington with the freshman class of 2010.

      Report Post » Laennec  

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