And not one dime of the cuts is certain!
Shawn Hannity is interviewing Speaker Boehner now. This plan is worse than I thought.
Basically, Obama gets $1 Trillion immediately in exchange for a promised $24 Billion in cuts the first year. That’s it. $24 Billion. And a gang 12 – 6 Democrats and 6 Republicans as yet unnamed – decide how to come up with the $24 Billion. Tax increases are not off the table to arrive at the measly $24 Billion, though Boehner “doubts” any Republican on the panel will vote for taxes. REALLY??? Not a single Republican would vote for tax increases? I don’t have any confidence that all 6 Republicans will hold the line. Not enough to hand Obama $1 Trillion!
According to Boehner, once this unnamed gang of 12 arrives at the magic formula to come up with $24 Billion in cuts or taxes, the House and Senate then vote on the package.
What if there is no agreement? What if Harry Reid refuses to bring up the cuts for a vote?
Well, unfortunately, Obama has already spent the money! And the really bad news is, the promised $1.2 Trillion in cuts take place over 10 years, with the bulk of the cuts coming in the last years, assuming that a new budget does not wipe the cuts off the docket AND 12 angry men (or women) can agree to make the cuts as promised.
Speaker Boehner is a complete buffoon and thinks that the American people are idiots.
Without an immediate plan for specific cuts THIS YEAR – to take place simultaneously with handing Obama a check in an equal or greater amount, no Republican should even consider voting for this.
This plan stinks and there is good reason that the Heritage Foundation and FreedomWorks is opposed to this.
According to Matt Kibbe at Freedom Works:
The new Boehner plan does not cut spending sufficiently enough to reduce the deficit next year and thereafter. The Speaker’s proposal would only cut $6 billion next year and $1.2 trillion in discretionary spending over the next 10 years—which is less than this year’s budget deficit alone. Even if all of these spending cuts come to fruition (they usually do not), it would still increase our national debt to $23.7 trillion by the end of the decade. The plan would only slightly reduce our nation’s projected debt-to-GDP ratio from 104 to 92 percent. It is clear that Boehner’s plan does not cut enough to save our nation from a creditworthiness downgrade.
Read the rest of the Kibbe article. It is pretty good, but my guess is he had not heard the Hannity – Boehner interview before he wrote the piece.
Dean Clancy at FreedomWorks has a good bit on this as well. He writes that the bill:
Violates the Cut Cap Balance Pledge* because it:
1) Does not cut spending sufficient to reduce the deficit next year and thereafter (and may not produce any deficit reduction at all next year: see next point).
2) Does not cap federal spending — and thus does not put us on a path to a balanced budget. Instead, it caps only discretionary spending (which is already capped by definition and equals only 39% of the budget).
3) Increases the debt ceiling without first passing a strong Balanced Budget Amendment (BBA) out of Congress.
Increases the chances of a tax hike by giving significant legislative power to a 12-member “Super Committee” charged with producing $1.8 trillion in 10-year deficit reduction.
Gives the President the power to unilaterally raise the debt ceiling by $400 billion, subject only to enactment of a Congressional Resolution of Disapproval. (This is a variant of the McConnell-Red “Cut Run & Hide” proposal.)
Does not — despite House Republican leaders’ rhetoric — reflect the “spirit” of the Cut Cap & Balance Pledge or the House-passed CCB Act.
Is unnecessary, because the House has already passed the Cut Cap Balance Act, H.R.2560, which does reflect the spirit of the Pledge. Despite the conventional wisdom that that Act is “dead,” it in fact remains parliamentarily alive in — and could be passed by — the Senate.
And Heritage.org has this analysis:
The Boehner proposal would cut $1.2 trillion in discretionary spending. There is no assurance that these cuts will occur, but let’s assume they do. Let’s even be generous and assume that they are – in the words of S&P– “enacted and maintained throughout the decade.” This would cut debt held by the public from its projected $24.9 trillion in 2021 to $23.7 trillion, and when measured against the economy from 104% to 99.4%. Certainly, this is an improvement, but it is hardly declining from today’s levels, nor would these cuts fundamentally restructure entitlements – the real driver of our deficits in the future.
Step two in the Boehner proposal would reduce deficits by an additional $1.8 trillion over ten years. Even assuming these cuts all happen, and even assuming they were all spending cuts – a broad assumption given the President’s rhetoric surrounding tax hikes on the wealthy – this would bring publicly held debt down to 92% of GDP. Better, but not that much. Even throwing in interest savings from deficit reduction would bring this down to 88%. Again, not much improvement and far worse than today’s debt ratio.
Any Republican that supports this bill is NO Conservative and is not working in the best interest of the Nation!