Well Cat-Food Two did exactly what was expected, it failed. So who really cares?
Automatic spending cuts of $1.2 trillion kick in in 2013 and the President is threatening to veto any legislation preventing these cuts.
If they continue to do nothing.
● $3.3 trillion from letting temporary income and estate tax cuts enacted in 2001, 2003, 2009, and 2010 expire on scheduled at the end of 2012 (presuming Congress also lets relief from the Alternative Minimum Tax expire, as noted below);
● $0.8 trillion from allowing other temporary tax cuts (the “extenders” that Congress has regularly extended on a “temporary” basis) expire on scheduled;
● $0.3 trillion from letting cuts in Medicare physician reimbursements scheduled under current law (required under the Medicare Sustainable Growth Rate formula enacted in 1997, but which have been postponed since 2003) take effect;
● $0.7 trillion from letting the temporary increase in the exemption amount under the Alternative Minimum Tax expire, thereby returning the exemption to the level in effect in 2001;
● $1.2 trillion from letting the sequestration of spending required if the Joint Committee does not produce $1.2 trillion in deficit reduction take effect; and
● $0.9 trillion in lower interest payments on the debt as a result of the deficit reduction achieved from not extending these current policies.
So over $7 trillion in ten years by increasing revenue and reducing spending and reducing interest payments on the $15 trillion debt.
So in a truly bipartisan effort of doing absolutely nothing then the "Austerity" they all cherish so dearly will kick in.
All this might work if they then use some of these cuts to boost the economy by investing in infrastructure, schools and small businesses at a rate of a $1 trillion a year for five years, part of this will be offset by increased revenue, reduced unemployment and further cuts to the Pentagon by ending the war in Afghanistan.
Tax rates under Clinton were hardly brutal, by reducing unemployment by investing in the nation any pain could be offset.
Now which of the two Parties is prepared to run on this?
You cannot just apply austerity.
You cannot just apply tax cuts.
You have to stimulate and drive the economy.
The Republicans cannot continue to hide behind obstruction.
The Democratic party cannot continue to blame and yield to the Republican Party and keep the approving Bush's "temporary" tax cuts.
Shared sacrifice and investment in the nation is a hard sell, I doubt either party wants to go there. No wonder congress is so popular.