Shortly after the debt deal was announced Boehner issued a powerpoint describing the framework of the deal reached today. I have not seen any kind of working document for the House or Senate dems.
Link and "highlights" of this mess from the dark side's perspective below the squiggle
NO TAX HIKES
‣ Same as House-passed bill, the framework
includes no tax hikes.
‣Requires baseline to be current law, effectively
making it impossible for Joint Committee to
increase taxes.
Well I'm not so sure about this. In the President's speech it sounds like tax increases are on the table for part two of the debt reduction and will be decided by this Joint Committe a.k.a. the "super committee". If anyone can enlighten me on why requiring that the baseline be current law makes it impossible to increase taxes, please do. If that is indeed the case, then taxes really aren't on the table.
UPDATE: Per the White House Fact Sheet (h/t oxfdblue) in section 3:
To Meet This Target, the Committee Will Consider Responsible Entitlement and Tax Reform. This means putting all the priorities of both parties on the table – including both entitlement reform and revenue-raising tax reform.
Also in section 5 of White House Fact Sheet
The Enforcement Mechanism Complements the Forcing Event Already In Law – the Expiration of the Bush Tax Cuts – To Create Pressure for a Balanced Deal: The Bush tax cuts expire as of 1/1/2013, the same date that the spending sequester would go into effect. These two events together will force balanced deficit reduction. Absent a balanced deal, it would enable the President to use his veto pen to ensure nearly $1 trillion in additional deficit reduction by not extending the high-income tax cuts.
Back to the Boehner Powerpoint
CUTS THAT EXCEED THE DEBT HIKE
‣ Same as House-passed bill, framework includes spending cuts that
exceed the amount of the increased debt authority granted to POTUS.
‣ Would cut & cap discretionary spending immediately, saving $917B over 10 years (certified by CBO) & raise the debt ceiling by less – $900B – to approximately February.
‣ Before debt ceiling can be raised, Congress and the president must enact spending cuts of a larger amount first.
So will the cut and cap be part of the legislation? How can they do it first if they're doing it at the same time? Doesn't this have to be done by Tuesday? yikes!
CAPS TO CONTROL FUTURE SPENDING
‣As in House-passed bill, framework imposes spending caps that would set clear limits on future spending & serve as barrier against gov’t expansion while economy grows.
‣Failure to remain below these caps triggers automatic acrossthe-board cuts (“sequestration”). Same mechanism used in 1997 Balanced Budget Agreement.
So even if the economy is booming, we will still be subject to these spending caps. If they're exceeded the whole budget gets whacked. I really hate this.
BALANCED BUDGET AMENDMENT
‣ Same as House-passed bill, framework requires both House & Senate to vote on a BBA after Oct. 1, 2011 but before the end of year.
‣ Similar to House-passed bill, framework authorizes POTUS to request second tranche of debt limit increase of $1.5T if:
‣ Joint Committee cuts spending by greater amount than the requested debt limit hike,
OR
‣ A Balanced Budget Amendment is sent to the states.
‣ Creates incentive for previous opponents of a BBA to now support it.
This one has me completely confused. It states that the BBA will go up for a vote but it also states that the President cannot request the second tranche of the increase unless the second round of cuts are greater than $1.5T OR the BBA is sent to the states. In order for the BBA to be sent to the states, it has to get 2/3 vote in both houses. It's an amendment. How can they mandate that it be sent to the states? If they can't pass at least $1.2T in cuts the across-the-board cuts (2 sections down) take effect so I'm not sure how this BBA fits in with the plan and the votes are just not there.
ENTITLEMENT REFORMS & SAVINGS
‣ Same as House-passed bill, framework creates a 12-member Joint Committee required to report legislation by November 23, 2011 that would produce a proposal to reduce the deficit by at least $1.5T over 10 years.
‣ Each chamber would consider Joint Committee proposal on an up-or-down basis without any amendments by December 23, 2011.
‣ If Joint Committee’s proposal is enacted OR if a Balanced Budget Amendment is sent to the states, POTUS would be authorized to request a debt limit increase of $1.5T.
I really want to know how they plan to choose who is going to be on this committee. Whatever comes out of there will be up for a straight up or down vote. If this beast passes, we need representation there. Bernie Sanders? ok I'm dreaming.
ENTITLEMENT REFORMS & SAVINGS
‣ Sets up a new sequestration process to cut spending across-the-board – and ensure that any debt limit increase is met with greater spending cuts – IF Joint Committee fails to achieve at least $1.2T in deficit reduction.
‣ If this happens, POTUS may request up to $1.2T for a debt limit increase, and if granted, then across-theboard spending cuts would result that would equal the difference between $1.2T and the deficit reduction enacted as a result of Joint Committee.
‣ Across-the-board spending cuts would apply to FYs 2013-2021, and apply to both mandatory & discretionary programs.
‣ Total reductions would be equally split between defense and non-defense programs. Across-the-board cuts would also apply to Medicare. Other programs, including Social Security, Medicaid, veterans, and civil & military pay, would be exempt.
‣ Sequestration process is designed to guarantee that Congress acts on the Joint Committee’s legislation to cut spending.
Again, I'm not sure I understand how this fits in with the requirement to pass the BBA. I believe this means if they don't reach at least $1.2T in the second round, we have to pass the BBA (how? idk) and send it to the states AND we have to have these across the board cuts.
Open for discussion. If there's a Dem presentation, I'd love to see it.
UPDATE: h/t again to oxfdblue for the link to the White House Fact Sheet
Here is the link to the Boehner Powerpoint