Senate Passes Debt Deal
- Posted on August 2, 2011 at 12:40pm by
Jonathon M. Seidl
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WASHINGTON (The Blaze/AP) — The Senate emphatically passed emergency legislation Tuesday to avoid a first-ever government default, rushing the legislation to President Barack Obama for his signature just hours before the deadline. The vote was 74-26.
Obama planned to sign the bill promptly and also was making remarks at the White House.
Tuesday’s vote capped an extraordinarily difficult Washington battle pitting tea party Republican forces in the House against Obama and Democrats controlling the Senate. The resulting compromise paired an essential increase in the government’s borrowing cap with promises of more than $2 trillion of budget cuts over the next decade.
Much of the measure, which the House passed Monday night, was negotiated on terms set by House Speaker John Boehner, including a demand that any increase in the nation’s borrowing cap be matched by spending cuts. But the legislation also meets demands made by Obama, including debt-limit increases large enough to keep the government funded into 2013 and curbs on growth of the Pentagon budget.
The vote breakdown is below:
“We’ve had to settle for less than we wanted, but what we’ve achieved is in no way insignificant,” said Senate GOP leader Mitch McConnell of Kentucky. “But I think it was the view of those in my party that we‘d try to get as much spending cuts as we could from a government we didn’t control. And that‘s what we’ve done with this bipartisan agreement.”
Many supporters of the legislation lamented what they saw as flaws and the intense partisanship from which it was forged. In the end, it was a lowest-common-denominators approach that puts off tough decisions on tax increases and cuts to entitlement programs like Medicare.
“What troubles me about it is that the bipartisan compromise also represents a kind of bipartisan agreement by each party to yield to the other party’s most politically and ideologically sensitive priority,” said Joseph Lieberman, I-Conn. “In the case of Democrats, it’s to protect entitlement spending. … In the case of Republicans, it’s to not raise taxes.”
The measure would provide an immediate $400 billion increase in the $14.3 trillion U.S. borrowing cap, with $500 billion more assured this fall. That $900 billion would be matched by cuts to agency budgets over the next 10 years.
The Senate vote was never in doubt after Majority Leader Harry Reid, D-Nev., and McConnell signed on. But like Monday’s House vote, defections came from liberal Democrats unhappy that Obama gave too much ground in the talks, as well as from conservative Republicans who said the measure would barely dent deficits that require the government to borrow more than 40 cents of every dollar it spends.
“This is a time for us to make tough choices as compared to kick the can down the road one more time,” said freshman GOP Sen. Jerry Moran of Kansas.
The measure sets up a fall drama that promises to again test the ability of Obama and Republicans to work cooperatively. It establishes a special bipartisan committee to draft legislation to find up to $1.5 trillion more in deficit cuts for a vote later this year. They’re likely to come from such programs as federal retirement benefits, farm subsidies, Medicare and Medicaid. The savings would be matched by a further increase in the borrowing cap.
There’s no guarantee the committee, to be evenly split between the warring parties, will agree on such legislation. But there are powerful incentives to do so because more budget gridlock would trigger a crippling round of automatic cuts across much of the budget, including Pentagon coffers.
And questions linger about the effect the grueling political free-for-all will have on the U.S. credit rating.
Treasury Secretary Timothy Geithner told ABC News that he didn’t know whether the debt-limit fight would cause America’s AAA credit rating to be downgraded. “It’s not my judgment to make,” he said. Geithner also said he fears world confidence in the United States was damaged by “this spectacle.”
Enactment of the measure provides welcome closure for Obama, who has seen his poll numbers sag during the debt-limit battle.
GOP presidential candidates such as Mitt Romney and Michele Bachmann issued statements opposing the legislation.
“As with any compromise, the outcome is far from satisfying,” Obama conceded in a video his re-election campaign sent to millions of Democrats.
In a tweet, the president was more positive: “The debt agreement makes a significant down payment to reduce the deficit – finding savings in both defense and domestic spending.”
This is a breaking story. Updates will be added.
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Comments (170)
fishstx777
Posted on August 2, 2011 at 1:00pmracist,traitors haters .uneducated,terrorist.Imagine if washington,adams or jefferson were still alive they be trying to tar and feather them.probably calling them unamerican, we are so loooooooooooost.
Report Post »SimpleTruths
Posted on August 2, 2011 at 2:07pmGeorge Washington started the nation off in debt to pay for the War of Independence. Nothing unpatriotic about that was there?
Report Post »wesleyapril
Posted on August 2, 2011 at 2:11pmSImpletruths and Rose-Ellen both must have been dropped on their heads.
Report Post »Jediusetheforce
Posted on August 2, 2011 at 2:27pmWhat are you going to do about it?? Join the commies of government workers!! Or be peaceful and not heard, blah blah. Or fight to the bitter death for what you believe is right.
Report Post »USA1Patriot
Posted on August 2, 2011 at 12:59pmWe will NOT forget this treason…. those that were part of the treason will be targeted for their personal pink slips in 2012 and beyond… they don’t have a clue as to whom they are playing with.
In their collective insnity, they know not what sleeping giant that they have awoken.. the American people.. and we are NOT happy campers.
Report Post »trolltrainer
Posted on August 2, 2011 at 1:03pmI understand your anger, but please…Can we cut back on the rhetoric? Pink slips? Treason? Come on now…
We will be doing good to get rid of Obama let alone win the Senate. If you have grand delusions of draining the swamp…Good luck to ya…
Report Post »joe3
Posted on August 2, 2011 at 1:05pmamerica is now a totalitarian fascist country.
Report Post »oldguy49
Posted on August 2, 2011 at 1:09pmtwo things that will change this crap………………flat tax and balance budget amendment
Report Post »AzDebi
Posted on August 2, 2011 at 1:11pm@USA1Patriot:
“We will NOT forget this treason…. those that were part of the treason will be targeted for their personal pink slips in 2012 and beyond… they don’t have a clue as to whom they are playing with.
In their collective insnity, they know not what sleeping giant that they have awoken.. the American people.. and we are NOT happy campers.”
________________________________
I totally agree with your statement…and I would add EVEN MORE but I am certain that it would be totally OUT OF LINE!
God H.E.L.P. the US of A!
Report Post »Wrabbit2000
Posted on August 2, 2011 at 1:12pmI believe it is fair to say every last one who voted for this in either side of Congress should be focused on for their next re-election so they don’t get another term after this. Nothing changes up there unless large numbers are thrown out in elections and the purpose is made clear.
Report Post »Jaycen
Posted on August 2, 2011 at 1:13pmWhy does the AP keeps saying “first-ever debt default”?
Will someone please call them out on that lie?
Report Post »Ruffus
Posted on August 2, 2011 at 1:14pmNO – DO NOT CUT BACK ON YOUR RHETORIC!! Everyone – stop blogging and start DOING!! Cowards we all for not marching down there and DEMANDING they stop this INSANITY – it is time my friends – to defend this great nation!
Report Post »Shiroi Raion
Posted on August 2, 2011 at 1:20pmWas there any doubt? I knew the Senate would pass this one.
Report Post »What are the Liberals fired up about? They’re angry because they actually had to compromise all the while saying, “The Republicans won’t give an inch,” even though they gave a mile.
We wanted to cut spending and all the Republicans managed to do was to give them less money to waste than they wanted. Boohoo!
Hint: If the richest country in the world can’t afford to pay its own government without borrowing… IT’S WAY TOO BIG and corrupt and maybe.. just maybe, they should start obeying the laws! The Constitution would be a good place to start. (and not reinterpreted to meet the desires of the corrupt Progressives)
IDareYa72
Posted on August 2, 2011 at 1:21pmTerrible deal… but what do they care… most people will think they saved the day by saving the country from default… Of course I blamed DC in my small time blog post last night and got it censored this morning… lol
http://justmytwocents-idareya72.blogspot.com/2011/08/lot-of-finger-pointing.html
Report Post »Fly Old Glory 24/7 365
Posted on August 2, 2011 at 1:24pmhow bout we concentrate on taking out the democrats in 2012 then go after the rino’s 2 years later. I know that is not enough for some of you ppl but a rino is at least somewhat on the “right side” when we know the democrats are anything but.
Report Post »HUGGINGMYBABIES
Posted on August 2, 2011 at 1:36pmIt is my belief that this president and the progressives of this Nation have but one goal…..to teach US citizens that while we enjoy sharing our wealth with the world we must also share the the same level of poverty that the rest of the world experiences. Sadly you can’t just come out and say to the poor in the US “Geez Bob I’m sorry but we have too many wealthy people here and not enough poor compared to China, so we need you to stay on the government dime so that China can get a few more of its citizens off of it.”. Doesn’t sound so good when its put that way, but its the concept they base all of their policies on. Its not sharing global wealth they are after, its sharing the global poverty. Granted we have some of the wealthiest poor people here, but how much will it take to quiet them? Will they stay silently on the government dole forever? How do you explain the Obama silence on the GE move to China? Its not about helping people here find their DREAM and OWN prosperity, its about quieting the poor so they don’t realize they are simply a part of the Obama scheme to level the GLOBAL playing field. As we become more like Greece, China becomes more like the US. But I ask you this….once China’s wealth eclipses ours, will they too feel the moral need to share the poverty?
Report Post »sWampy
Posted on August 2, 2011 at 1:37pmWhat the hell did the democrats give up, they raised spending, raised the limit, and raised taxes on the poor and middle class, that’s all the democrats wanted.
Report Post »grandma7
Posted on August 2, 2011 at 1:39pmTheir joy is to divide us. I agree with Fly Old Glory.
OldGuy49 – Fair Tax is what we want. But Flat would be better than what we’ve got.
Anyone else hear Rinos telling us that the Tea Party has won. I say – they don’t know the Tea Party!!
Report Post »teapartyconservatism
Posted on August 2, 2011 at 1:53pm@ IDareYa72
There is a whole lot of censorship going on here at the Blaze too.
Report Post »vtxphantom
Posted on August 2, 2011 at 1:53pmAs an option, we should not rule out secession. The government may be putting us into an untenable posistion. I will not allow my children to be burdened with our mistakes and our poor representation. Government has caused this problem and we are asking these same people to fix it. Only we can fix it. We do have the truth and we do have the vote.
Report Post »chubby
Posted on August 2, 2011 at 1:58pmTrolltrainer,
Report Post »You have got to be kidding! What happened in Congress, not just the Senate but the House as well, is treasonous. It has set us on an almost vertical slippery slope to destruction.
I am all for getting rid of those in both houses that voted for this lousy piece of legislation in their next time at bat.
I must say if what these folks have done is not treasonous then it is just another ploy to keep power. Either way the job they did sucks!
godlovinmom
Posted on August 2, 2011 at 2:01pmI’m with FlyOldGlory also…we have to concentrate on 2012…NOTHING we can do about it now…I know I’m one American woman that will do all I can in my community to get people to vote these fools out of office…As Glen does, educate your neighbors!…if they don’t want to listen move on. I believe obama‘s administration has awakened alot of people and we’re paying attention!
Report Post »Class2000Generation
Posted on August 2, 2011 at 2:02pmJust be sure to copy the list ~ garbage list for 2012.
Report Post »whitebears
Posted on August 2, 2011 at 2:05pmFire the RINOS!!!! That means you Boehner!! Woe to this fallen country and those that have allowed it. We are watching prophecy being fulfilled. “And the first beast gave its power to the second beast” (Revelation 13)… Will this be a wake up call for the citizens of the US? Only those who are hungry for the TRUTH will be able to put this great mystery together. God is angry at USA…we have removed HIM from all aspects of our lives…all in the name of ONE WORLD WHATEVER….government, multiculturalism, equal rights, gay rights, etc….Woe to us.
Report Post »wesleyapril
Posted on August 2, 2011 at 2:10pmI was going to say we could keep the 22 from yesterday and the 26 from today, then drain the rest – however, after looking at some of nays – they are worthless also – so we need to bring the number down just a little more :)
And your right, we won’t get Obama out in 12 – no way will we get the rest.
Report Post »teapartyconservatism
Posted on August 2, 2011 at 2:10pm@ IDareYa72
The moderators here at the blaze just censored out my comment regarding censorship here at the Blaze, which I posted in reply you your comment about censorship. So don‘t feel like it doesn’t happen here too. It happens a lot, even if one is compliant with the guidelines. If they don’t like what you have to say, it won’t be posted.
So much for the Constitution and free speech in the USA. Welcome to Glenn Beck’s version of USSA Pravda!
Report Post »BeingThere
Posted on August 2, 2011 at 2:10pm98% of the entire congress belongs in prison!
Anagram: Senator = Treason
Report Post »SavingtheRepublic.com
Posted on August 2, 2011 at 12:57pm^____^____^
The dolts in the Senate that voted on increasing the debt this country cant afford just signed their own pinkslip IMO!
I hope it is clear to many now that they ALL have to be kicked out including those deemed “good”. Just as surgeons must remove healthy tissue when operating on a cancer patient the same must be done in DC. NOTHING will ever change for the better in this country until this “gutting” of DC takes place; aswell at the state level. They acted to protect themselves and put this on the back burner until after the ‘12 election. So how much until you have had enough AmeriKa? Time is not on your side, you need to come to grips that NO ONE is going to come along and handle the thing you complain about… that someone is YOU! http://SavingtheRepublic.com
Report Post »MidWestMom
Posted on August 2, 2011 at 1:23pm““As with any compromise, the outcome is far from satisfying,” Obama conceded in a video his re-election campaign sent to millions of Democrats.
You got one thing right there Bub, the outcome IS far from satisfying. We the People are NOT satisfied at all…not one little bit.
Report Post »agameofthrones
Posted on August 2, 2011 at 12:57pmHaven‘t you noticed that when you max out your credit cards and can’t pay the monthly payments, they raise your credit limit?
Report Post »Yeah, me either.
Fed up in Bama
Posted on August 2, 2011 at 3:00pmIt’s like for me promising to give them $1 for every $1 they up my credit. It’s spinning wheels. We haven’t cut any spending. It’s tit for tat. The ppl in Washington is so bright. At least my Alabama Senators did what was right.
Report Post »jrcess
Posted on August 2, 2011 at 12:57pmHarry Reid what a miserable excuse for a human.
Report Post »vtxphantom
Posted on August 2, 2011 at 1:07pm2012 will be the year! We will get rid of the RINO’s and whatever dems we can pick off. Change will come to DC. We will turn this Weimar Republic around.
Report Post »LibertyMama
Posted on August 2, 2011 at 12:55pmWhat say we charge this next 2 trillion to my great-grand kids… I think my grandkids are tapped out. Although its hard to tell since the grandkids aren’t even close to being conceived yet.
Report Post »vennoye
Posted on August 2, 2011 at 12:54pmOnly 7 trillion more in debt in 10 years???? How wonderful….. How inconvenient for us that they could NOT cut the spending enough to get to Standard and Poor’s recommendation of 4 trillion cut to avoid a downgrade!!
Report Post »biohazard23
Posted on August 2, 2011 at 12:54pm“Suppose you were an idiot and suppose you were a member of Congress. But I repeat myself.” ~ Mark twain
Report Post »biohazard23
Posted on August 2, 2011 at 12:53pm“Public affairs go on pretty much as usual: perpetual chicanery and rather more personal abuse than there used to be.” –John Adams
Report Post »timej31
Posted on August 2, 2011 at 12:51pmRemember Nancy Pelosi said it’s all astroturf.
Report Post »Jediusetheforce
Posted on August 2, 2011 at 12:50pmThese clowns who voted yes are living in a bubble. Its time to axe the yes votes in the senate demogods/tea/repubs. They can’t even cut government jobs and that is one problem. Now they are going to focus on jobs…WHAT A JOKE!!!!
Report Post »seeker75
Posted on August 2, 2011 at 12:50pmEveryone needs to read S. 365. Especially Title IV.
Report Post »Truthbeliever2
Posted on August 2, 2011 at 12:50pmIsn’t compromise wonderful.
We’re saved.
Report Post »trolltrainer
Posted on August 2, 2011 at 1:10pmeh, life goes on…
another day, another trillion in debt…
I have a feeling we will eventually default. Then what? I think it may be the best thing. It will hurt for a decade but we will eventually get back on our feet, and in the long run we may be better off for it. Who knows…I don’t…
But whatever…Life goes on. Take your kids fishing, go hike the AT, go to the mall…Thank the good Lord that you have food on your table and a roof over your head…for now…Life goes on…
Report Post »Truthbeliever2
Posted on August 2, 2011 at 3:24pmVery true. An interesting time to exist. For sure.
What will happen next?
Report Post »agameofthrones
Posted on August 2, 2011 at 12:50pmor it’s the fault of all you tea party neo-terrorists out there. Besides, we can always print more money. Just relax. It’s gonna be great!
Report Post »Uncle Sammy
Posted on August 2, 2011 at 12:50pmThey have just sold the future of our grandchildrens grandchildren. They handed this socialist mad max a check with a 7 trillion dollar limit ???? Now our debt can “legally” increase to 21 Trillion ?
Report Post »My God. They are insane.
nysparkie
Posted on August 2, 2011 at 12:52pmThey really are insane. It would have been better, IMHO, to have let the whole thing collapse like a house of cards. S C R E W China and the debt they hold. They are now building an Aircraft carrier and with what? Our debt money.
Report Post »Stopit
Posted on August 2, 2011 at 1:08pmYou’re dreaming. This isn’t about generations down the road. Within 3 years and most likely much sooner our money will be worthless.
Report Post »nysparkie
Posted on August 2, 2011 at 12:49pmWhat happened here? 17 TRILLION 17 TRILLION 17 Trillion 17 Trillion. I was hoping it would leave if I repeated it enough. C R A P. Still here.
Report Post »GMP
Posted on August 2, 2011 at 12:49pmCongratulations Freshmen Republicans, you have successfully ignored everything the American people sent you to Washington. What a dissapointment
Report Post »agameofthrones
Posted on August 2, 2011 at 12:48pmYou guys! It‘s still Bush’s fault. They will blame him all the way over the cliff!
Report Post »LibertyMama
Posted on August 2, 2011 at 12:46pmOh good, 16 trillion in debt here we come!
Report Post »nysparkie
Posted on August 2, 2011 at 12:46pmBroke and their are no mechanics to fix this thing. They all just quit to go on unemployment – I Hope.
Report Post »cessna152
Posted on August 2, 2011 at 12:46pmSo they made a deal for more debt? Why is this “legal”? This is Bernie Madoff but 10,000 times worse…HOW is this LEGAL.
Report Post »trolltrainer
Posted on August 2, 2011 at 12:46pmSurprise, surprise, surprise…
Report Post »nysparkie
Posted on August 2, 2011 at 12:45pmPoo. The Poo is going to hit the fan by the end of this round of Debt!
Report Post »Cymry
Posted on August 2, 2011 at 12:45pmput another check on that marxist world takedown checklist. if barry soetoro were to be held to account by the scotus for not meeting the constitutional requirements to be potus, then all of this would go away.
Report Post »cessna152
Posted on August 2, 2011 at 12:52pmOnce again they call “Tea Partiers” Terrorists… but they have proven ,yet again, they are what they say others are. These people are NAZI TERRORISTS! Treason….
Report Post »EqualJustice
Posted on August 2, 2011 at 12:43pmOf course they did… now that they have passed the BLAME elsewhere… along with the BUCK.
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