Wednesday, July 27, 2011

Boehner Releases Revised Plan for $900 Billion Debt Ceiling Hike

Boehner has released his revised plan, which includes:

*Agree to hike debt limit by $900 Billion
*$22 Billion in cuts for 2012 (yes, you read that right, a mere $22 end up $22 Million if the plan is agreed to by Dems)
*$917 Billion in cuts over 10 years (so basically $22 Billion in cuts in 2012, and $895 Billion in cuts oh...say in.... 2022)

As the Treasury has already burned over $300 Billion in Fed employee pension funds, etc, this makes the debt limit hike effectively $600 Billion.
With the current burn rate of $150-$200 Billion/month...that means the debt ceiling would have to be hiked again....oh, by say sometime between.....  Thanksgiving and Christmas!
Boehner Press Release:

BREAKING: Independent CBO Confirms Spending Cuts Exceed Debt Limit Hike in Revised GOP Plan; Bill Now Includes $22 Billion in Deficit Reduction in First Year
Posted by Speaker Boehner's Press Office on July 27, 2011
The Congressional Budget Office (CBO) has released its analysis of the revised Budget Control Act of 2011 today, and CBO’s analysis confirms that the spending cuts are greater than the debt hike – affirming that the House GOP bill meets the critical test House Republicans have said they will insist upon for any bill to raise the nation’s debt ceiling. Specifically, the CBO analysis confirms the Republican plan will:
  • Cut and cap spending by $917 billion over 10 years – that’s more than the $900 billion debt hike;
  • Cut $22 billion in spending for FY2012 and hold spending below FY2010 levels until FY2016;
  • Continue reducing discretionary spending each year compared to President Obama’s budget (by $96 billion in 2012, $118 billion in 2013, $115 billion in 2014, $117 billion in 2015, and so on); and
  • Require Congress to draft proposals that produce reductions of at least $1.8 trillion that help protect programs like Medicare and Social Security from bankruptcy.
Republicans adjusted their spending cut bill after a lower-than-expected score from CBO. This updated analysis confirms what others are saying: the Republican plan “changes the trajectory of spending” and “would keep the debt cutting process going.” Unlike Senator Reid’s gimmick-filled plan, the Republican proposal includes real spending cuts and reforms that will restrain future spending – and the spending cuts are larger than the debt limit increase.
This bill is far from perfect, but it’s a positive step forward that denies President the $2.4 trillion blank check that lets him continue his spending binge through the next election. Learn more about it here.