Sunday, July 31, 2011

Potential Speed Bump on the Path to a Deficit Deal

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July 31, 2011 10:09 AM

ABC News' Jake Tapper reports:

Here?s one of the problems with where the emerging outline of a potential deal.

There does not seem to be much concern that the super-committee, as first proposed by both Speaker Boehner and Senate Majority Leader Reid more than a week ago, wouldn?t be able to come up with a proposal.

?It?s not as though they?ll be starting from scratch,? a Democrat close to the negotiations says, referring to the Gang of 6 proposal, Bowles-Simpson, Domenici-Rivlin.

But what would force Congress to act on their recommendations?

The idea of triggers -- as one Democratic official close to the negotiations put it ? is to have the risk of a ?neutron bomb? going off to force the super-committee to act to reduce the deficit.

Republicans have negotiated tax increases off the trigger table, and Democrats have negotiated away any cuts to entitlement programs.

The White House believes the trigger to force Congress to pass the deficit reduction recommendations of the super-committee should be threatened cuts to both discretionary domestic spending and the Pentagon ? 50/50.

House Republicans are pushing for the across the board cuts.

Democrats do not think the threat of the sudden imposition of more than $1 trillion in across the board spending cuts is enough of a threat to House Republicans. They think a lot of them would like that and thus the super-committee would be doomed to fail.

-Jake Tapper

July 31, 2011 in Jake Tapper | Permalink | Share | User Comments (80)

User Comments

"all the cuts in social insurance programs.. what did the GOP give ????"

Ahhh... but the cuts are NOT specified. Yep SS and Medicare are targets but so is defense and there is a hole to raise taxes. So the GOP might not be aware as they think. For arguement sake, let's say it looks like a epublican would get in as the next President...let's say it together... NIGHTMARE!!!

The GOP also gave up the ability to make use of this non-issue in the next Presidential campaign and that's HUGE for the President. FOX, Limbaugh, Hannity and the other characters would be working overtime had this been an element.

Posted by: MyTakeOnThis61 | Jul 31, 2011 2:03:58 PM

GRANT: "When are they going to close the tax loopholes for the wealthy and end the subsidies to big oil?"

As soon as we stop letting them buy elections.

Posted by: jock59801 | Jul 31, 2011 2:02:17 PM

@ JOCK: Its quite simple. Lets say you were hired on as CEO of a company that was hemhorraging money, up to its waist in debt. Your job, coming in, is to get that company running right. But instead, you INCREASED that debt til the company's on the brink of insolvency.

Wouldn't you think people would be MORE concerned with what YOU did than the guy who came before you? Sure, they did a bad job. But you came in AND MADE IT WORSE.

Corrollary to Obama, he made things far worse rather than better. So why shouldn't that be the more pertinent and relevant issue?

Posted by: Phydeux | Jul 31, 2011 2:01:39 PM

Tom Brokaw (Liberal) stated this morning that the Tea Party brought to the forefront the crisis of spending by our government. He said he was thankful to them, because this is a debate that needs to happen now.

Posted by: David From Texas | Jul 31, 2011 2:01:05 PM

Four years of a lame duck president with Obama's domestic and especially foriegn agenda would be disasterous.

Posted by: LongT | Jul 31, 2011 2:01:02 PM

Phydeux - yes, GE paid no taxes. And yet Obama is trying to close those loopholes and the Republicans are preventing it.

Posted by: jock59801 | Jul 31, 2011 2:00:33 PM

@PHYDEUX We need the EPA now more than ever. Here's a question for you. How many times has an energy company been forthright and honest about the scope of an energy related natural disaster?
--------
The answer is NEVER! Every single energy related natural disaster is accompanied by string of lies trying to mask their incompetence. You call for the elimination of the EPA, and I say we need tougher laws and more stringent inspections, and restrictions to preserve the natural state of our world. Letting the energy companies police themselves, would be like replacing the police with the mafia.

Posted by: Eric | Jul 31, 2011 2:00:13 PM

Here's a neutron bomb that if triggered would be anathema to Congress and an absolute WINDFALL for the nation!!:

If one or the other fails to do what they are required to do, then a CONSTITUTIONAL AMENDMENT shall be sent to the states for ratification that will once and for all assert that money is NOT free speech and therefore may be outlawed and regulated to the satisfaction of the American people without interference from the Supreme Court!!!!!!

Posted by: sameagain | Jul 31, 2011 1:58:39 PM

@Eric - Why should the government take care of the elderly and indigent? Since when is that their role? Why not let family, friends, and the millions of charities in this country founded on those principles do it? After all, that's how these things were done prior to the government sticking its nose in, and it worked quite well. In fact, private charities tend to be far more efficient and cost-effective with their donors' money.

As for tax breaks for yachts and jets, aren't those rather small potatoes to be whining about when corporations like GE pay no taxes and Obama turns right around and give Immelt a cushy new job? Talk about looking like you're in big business's pocket! Obama should be wearing a GE lapel pin, if not a brand on his hip.

Posted by: Phydeux | Jul 31, 2011 1:57:18 PM

If you invite a devil for dinner, the devil will eat you. The TEA devils are now holding the Republican party hostage. Now is the time for the Republicans to choose between: TEA or SANITY, PARTY or CULT, Dumb or Wise, Special Interest GLOVER or American Interet CLOVER, patriot or Anarchist, The GOOD or The Worst

Posted by: James Gospel | Jul 31, 2011 1:55:36 PM

all the cuts in social insurance programs.. what did the GOP give ???? I don't see any compromise on the GOP part. They are protecting the rich to the point of throwing the rest of America under the bus.... SMH

Posted by: jeanne021556 | Jul 31, 2011 1:55:26 PM

Phydeux - The debt accrued under Obama is more RECENT than Bush's, but how is it more RELEVANT? Debt is debt; it doesn't go away with time. Everybody helped get us into this. ESPECIALLY the voters, who constantly voted for people who promised us a government we didn't have to pay for (no new taxes).

Posted by: jock59801 | Jul 31, 2011 1:53:40 PM

"Susan; I hate to tell you this, but all Obama is interested in is 2012...."

AND so he should be!!! There is much, MUCH more work to do!!! Heck! We need an additional 4 years of him and another 8 of someone with similar characteristics (of either political pesuasion but same ideas) to get in there and "right" this boat. I'm all for another four years!!!

What's the alternative? Romney? (always liked him); Huntsman? (like him too) but they are like the President. Therefore I will stick with what we have!

The other candidates? Please.....

Posted by: MyTakeOnThis61 | Jul 31, 2011 1:52:22 PM

When are they going to close the tax loopholes for the wealthy and end the subsidies to big oil?

Posted by: Grant | Jul 31, 2011 1:52:21 PM

@LONGT The key difference is that I support the spending programs of the Democrats to preserve our natural resources, care for the elderly and indigent, Educate our children, and combat hunger.

The denounce the Republicans and their tax breaks for wealthy people to buy yachts, subsidies for oil companies, offshore tax havens for greedy corporations, and often ridiculous defense programs.

And Remember this...The top earmark spender in congress is a REPUBLICAN from Kentucky! And they blame all the spending on Obama...What fools.

Posted by: Eric | Jul 31, 2011 1:52:18 PM

The GOP did MOST of this damage.

Posted by: MaeMobly | Jul 31, 2011 1:50:18 PM

Eric, hate to break it to you, but it was Obama and the Dems who have stolen the middle class's wealth by taking America's wealth and funnelling it into stimulus programs, Obamacare, and through countless government bureaucracies such as the EPA. That way, Obama could strangle oil production via EPA fiat, and cramp US manufacturing by requiring extensive environmental impact reviews and still not issuing permits.

Sure, the GOP has done its damage in the past. But in the last 2 years, Obama's only accelerated the damage and taken more money out of the private sector and put it into the pockets of Washington bureaucrats.

Posted by: Phydeux | Jul 31, 2011 1:49:14 PM

PHYDEUX - Enough with the lies about what Obama has added to this. He's added 1.44 to Bush's 5.07 trillion. And Obama's doesn't repeat next year like Bush's. So if you voted for Bush I can thank you for most of this.

Posted by: MaeMobly | Jul 31, 2011 1:47:46 PM

"Eric, I agree with you. This is a manufactured crisis the GOP cooked up to cut Medicare, Medicaid and Social Security. They don't care about deficts or debt when they are in office. GW Bush ran up a huge defict/debt and so did Reagan. And the GOP voted to raise the debt ceiling many, many times when we had a GOP President."

I agree and disagree. Yep! It was indeed a manufactured crises (which became quite dangerous!) Susan honey, they have tried everything to bring this President down and FINALLY (only in their minds) they have got something which can get a bit of traction BUT I believe this will backfire upon them...and that's not wishful thinking either. The President has pretty much come out smelling like a rose--really. The electorate is more aware than I even give them credit for. ...and that ain't much.

Posted by: MyTakeOnThis61 | Jul 31, 2011 1:46:09 PM

LONGT, I hate to tell you this, but so is everyone else.

Posted by: jock59801 | Jul 31, 2011 1:45:11 PM

Hey Susan. Enough about GW Bush, we all know what he did. What about the huge deficit run-ups caused by Obama? Can we talk about that for a change since its more relevant, recent, and far more impactful to our current situation?

Posted by: Phydeux | Jul 31, 2011 1:43:48 PM

@SUSAN Don't lose hope. President Obama is the leader of a divided government, and at this time must share power with House Republicans through compromise. The Republicans have revealed their true agenda - crippling social security and medicare to allow those that stole the wealth of the middle class to get away with their crime. The next election will not go well for these criminals, and President Obama and others will hold them accountable.

Posted by: Eric | Jul 31, 2011 1:43:07 PM

Make things that contribute to the deficit less profitable: Manufactured goods from China and IT services from India. Lack of tariffs on goods and services from these countries is a form of welfare for corporate CEOs who eliminate US jobs. The Tea Party is a cover for politicians on the take from these same CEOs.

Posted by: Ed | Jul 31, 2011 1:43:04 PM

BREAKING: Senate votes DOWN Democrat plan.

Posted by: David From Texas | Jul 31, 2011 1:42:37 PM

Susan; I hate to tell you this, but all Obama is interested in is 2012. He isn't interested in any of us unless it's our vote.

Posted by: LongT | Jul 31, 2011 1:40:46 PM

KM- I remember being able to deduct auto and credit card interest, that was nice, but honestly I don't think it was appropriate. Part of our middle & upper class problems were buying a new car every few years ( we didn't and don't need that). Part of our entitlement and waste has been in very poor habits, I think much of that is part of the Washington problem too. I think it would be good to fix the debt limit and force the hard choices of either across the board cuts or removing the various waste areas.

Posted by: Richie Rich | Jul 31, 2011 1:40:12 PM

"So many emotional people posting today. Looks like the "create a good crisis and don't waste it" political ploy has worked."

Ohhhhh... not at all! I'm perfectly content that I don't have to pay additional taxes (and I'm one who thought I should.) I'll just contribute to homeless shelter (get the deduction) and support some kid's sports program (another deduction.)

I think this debate was good though because America must concentrate upon its spending BUT it is more important to concentrate upon investment which has been sorely lacking in this country for decades. Trust me, America is NOT number one in a A LOT of things anymore.

Posted by: MyTakeOnThis61 | Jul 31, 2011 1:39:43 PM

"So many emotional people posting today. Looks like the "create a good crisis and don't waste it" political ploy has worked."

Ohhhhh... not at all! I'm perfectly content that I don't have to pay additional taxes (and I'm one who thought I should.) I'll just contribute to homeless shelter (get the deduction) and support some kid's sports program (another deduction.)

I think this debate was good though because America must concentrate upon its spending BUT it is more important to concentrate upon investment which has been sorely lacking in this country for decades. Trust me, America is NOT number one in a A LOT of things anymore.

Posted by: MyTakeOnThis61 | Jul 31, 2011 1:39:36 PM

Eric, I agree with you. This is a manufactured crisis the GOP cooked up to cut Medicare, Medicaid and Social Security. They don't care about deficts or debt when they are in office. GW Bush ran up a huge defict/debt and so did Reagan. And the GOP voted to raise the debt ceiling many, many times when we had a GOP President.

Obama needs to stop giving in to these lunatics. I regret voting for him so much. He is selling America down the river by caving in to the GOP.

Posted by: Susan | Jul 31, 2011 1:36:53 PM

ALL are to blame...Obama, Republicans, and Democrats and everyone else in the "in between" in Congress. I hope they ALL know 2012 is coming and AMERICA will have the final say.

Posted by: David From Texas | Jul 31, 2011 1:35:08 PM

We need to come together as a nation and stop blaming each other, we need to fix this crisis.
We have a Great Nation, let's not throw it away.
Where are all the grown-ups?

FYI:
Obama did not create this crisis we are in.
The Deficit was left for him to clean up, by the last administration. When Clinton was in office, we had "0" deficit. Let's not have selective memory, for our own political agenda.

Posted by: Sofia | Jul 31, 2011 1:34:59 PM

Re: "But what would force Congress to act on their recommendations?"

Why would Congress have to be forced? That's unconstitutional. No supercommittee has the right to impose anything on our Congress.

Congress is supposed to represent the people, remember?

Posted by: Susan | Jul 31, 2011 1:31:18 PM

Eric, I hate to bust your partisan bubble, but they've all been using S.S. as part of the general fund since Lyndon Johnson made it law in 1965. You people are beginning to crack me up!

Posted by: LongT | Jul 31, 2011 1:30:23 PM

If the Democrats don't get a compromise they believe is fair, I will support them 100%, in walking away from the Republicans. This is their crisis, they created it, and are using it reduce social security spending and medicare. They have spent the last 30 years raiding these programs for cash to distribute to their personal friends and campaign contributors. Now they want to scuttle these program s before people realize the money was stolen. this is the most disgraceful act of greed the world has ever seen, and if left un-resolved will destroy this once great nation.

Posted by: Eric | Jul 31, 2011 1:27:17 PM

So many emotional people posting today. Looks like the "create a good crisis and don't waste it" political ploy has worked.

Posted by: LongT | Jul 31, 2011 1:26:22 PM

"Our social security fund was suppose to be solvent (2 trillion plus), secure and locked away but the money isn't there. We are borrowing it to pay the people who receive it, people who sent their money to Washington for their own benefit. Where did it go?"===================Go back to 1983 , Reagan was president and he ( with bipartisan support ) started the outright taxation of SS benefits. SS was fine , until Reagan-ittes started monkeying around with it .

Posted by: danpan | Jul 31, 2011 1:24:42 PM

Congress seems to forget that Americans have taken note of this debacle. These politicians are in for a rude awakening in 2012

Posted by: what667 | Jul 31, 2011 1:21:29 PM

Hey Ron, I remember the Republicans getting Obama Care shoved down there throats. What happened to bipartisanship?

Posted by: Guinness1956 | Jul 31, 2011 1:08:39 PM

Obama ran for President with a major part of his campaign being to get health care coverage for every American.

And he was elected with that as a major part of his platform.

Posted by: Decker | Jul 31, 2011 1:19:22 PM

This country is completely defunct. It's not just Congress. I'm ready for a civil war against the Fascist scum that have stolen America from the working class.

Posted by: Clark Nova | Jul 31, 2011 1:12:05 PM

"We need to reduce jobs in the government sector and increase jobs in the private sector...."

That's a WONDERFUL and very "red, white, and blue!" But tell me how are you going to do that. When a mid-evel (low side) IT person runs 60K per year plus benefits in this country but in India I can get that same comparable person for 15-20K per year? As a business person I'm not THAT patriotic but I'll contribute to my nearest homeless shelter (of which I shall receive a major tax deduction)and support my kid's little league team.

Posted by: MyTakeOnThis61 | Jul 31, 2011 1:10:48 PM

Listen, when you have a Congress that gives blank checks or opened ended checks to a corrupt banking institutions to illegally increase the debit to multi-trillions along with the Unconstitutional Federal Reserve illegally taxing Americans with a fraudulent Federal Income tax then you don't have a system of balances and checks but rather totalitarianism at it's best or a full scale operation of milking American's completely dry. Congress and the president are controlled by the Unconstitutional Federal Reserve and unless you repeal the Federal Reserve Act you can expect more of the same. More illegal wars and more homelessness; it's all planned!!!

Posted by: Donny | Jul 31, 2011 1:10:28 PM

To wipe out the deficit and balance the budget, everything must be on the table: cut spending, cut military budget, cut welfare to the rich and corporations, reform entitlement programs,get rid of Bush tax cut to the rich and close the tax loop holes on the rich and corporations. More impotantly, get rid of the TEA baggers and GLOVER in 2012

Posted by: James Gospel | Jul 31, 2011 1:09:49 PM

Hey Ron, I remember the Republicans getting Obama Care shoved down there throats. What happened to bipartisanship? The Democrats put us into this mess by not delivering a budget in the past 859 days.

Posted by: Guinness1956 | Jul 31, 2011 1:08:39 PM

This is all a complete waste of time. The US is going to get down-graded regardless of the agreement, and this Congress on deals with budgets up to 2013. Then the next elected Congress does not have to abide by these cuts. A BALANCED BUDGET AMENDMENT IS OUR ONLY HOPE, and Barack will have no part of that.

Posted by: Guinness1956 | Jul 31, 2011 1:07:06 PM

At this point it's totally irrelevant exactly what they do, just do SOMETHING to calm the markets and prevent further damage to everyone's investments and retirement accounts. I'm afraid we're headed for a TARP repeat. The Tea Freaks in the House will torpedo any plan agreed to by the leadership and the White House, the stock market will implode, and then there will be an emergency session to pass something but by then the damage will have been done. The Tea Freaks are reprehensible. They are in way over their ignorant heads and they are irrevocably damaging the country. Compromise is what you do in negotiations in business. You'd think these clowns, who are always touting the superiority of the private sector, would at least understand how negotiation works.

Posted by: esq777 | Jul 31, 2011 1:06:32 PM

@PETER One more thing...the debt service percentage for 2011 is 1.8%. Past Republican administrations had percentages of %3.0.

Posted by: Eric | Jul 31, 2011 1:05:27 PM

What we need to do as a country and as American's is vote for NO GOP/REPUBLICANS in the next election. They are one of the main reasons that this country is going down. First, everyone on Wall-street should have fired and gone to jail for screwing over the Middle class. Second, all compnanies that ship jobs overseas should be faced to pay heavy fines and companies that fail to provide Health Care to AMERICANS, not those are NOT AMERICANS by birth should be closed down. Third, we should NOT import items for any more companies until we bring back our JOBS.

Posted by: Thomas | Jul 31, 2011 1:04:50 PM

"...There were no jobs created by ?job creators? only increased profit by using cheap overseas labor."

RIGHT ON!!! Apple's recent performance knocked the ball out of the park into the NEXT two States!!! I say GOOD for them and I wish I was still a shareholder! However, how many jobs did Apple create here in the USA? Let's not concentrate upon how many IPads that the company SOLD here in the hard-pressed USA but upon how many JOBS did they create.Folks. The numbers problem we face right now is so huge that going after the rich is like holding back the pay & perks of Congressmen. They sound great but the numbers are just not there. The real numbers are in Social Security, Medicare and Medicaid. Even defense is not a huge capture."

You're absolutely correct and agree with you 100%!!! Maybe one day those who are of the partisan nature will wake up and realize that not only do we have some serious financial problems but have some serious competitive, education issue problems as well. We are focusing upon the wrong things... and that's in my IMHO of course...

"

Posted by: MyTakeOnThis61 | Jul 31, 2011 1:03:06 PM

PETER said "Folks. The numbers problem we face right now is so huge that going after the rich is like holding back the pay & perks of Congressmen. They sound great but the numbers are just not there. "
----------------------
That's simply not true. Imagine twelve people entering a room. and in the center of the room sitting on a table is a pie with twelve slices. One Person says that 11 slices of the pie are his and the other 11 people have to share a single slice of pie. That is exactly the distribution of wealth in the United States. The rich have hoarded the wealth of this nation for themselves, and continue to do so at an ever increasing rate. That have an entire political party lobbying for them in Washington. I believe that until we alleviate this central issue, our economy will worsen, and middle-class America will continue it's decline.

Posted by: Eric | Jul 31, 2011 1:02:55 PM

Vote the marxist out of the whitehouse in 2012 if you love America!!! 4 more years would be disastrous.

Posted by: rkm63 | Jul 31, 2011 1:02:13 PM

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