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Reuters: Highlights Of The ‘Modest’ Budget Deal

From Reuters:

Factbox: Highlights of a modest U.S. budget accord

Tue Dec 10, 2013

(Reuters) – … Here are the major components of the tentative agreement negotiated by Republican Representative Paul Ryan and Democratic Senator Patty Murray:

AUTOMATIC "SEQUESTER" SPENDING CUTS

It blunts the effect of these already-enacted across-the-board cuts by allowing spending on federal agencies and discretionary programs to rise by $63 billion over scheduled levels – $45 billion in fiscal 2014, which began on October 1, and $18 billion in fiscal 2015. The spending relief is split evenly between domestic and military programs.

Which means the sequester cuts, which were to be $85 billion, have been cut almost in half for 2014. (And just before the elections.)

SPENDING LEVELS

The deal sets discretionary spending levels at $1.012 trillion for fiscal 2014, up from the $967 billion level that included the full effect of the automatic, "sequester," spending cuts approved as part of a temporary budget deal in 2011… For fiscal 2015, the discretionary spending would be set at about $1.014 trillion, up from $995 billion scheduled under the sequester cuts.

Which means there are no caps, if they can be changed like this.

DEFICIT REDUCTION

In addition to the $63 billion in sequester relief, the deal will provide an additional $20 billion to $23 billion in deficit reduction spread over 10 years, through a combination of lower government benefits, spending cuts and higher revenues…

We thought Ryan said the deal cut $85 billion over the next ten years. But if the Republicans are only getting $20 billion in cuts over ten years in exchange for an immediate increase in spending of $63 billion, they are really getting hosed.

FEDERAL RETIREMENT BENEFITS

The deal finds $12 billion in savings by through changes to retirement programs for federal employees and working age retired military service members. Federal employees hired after January 1 would contribute an additional 1.3 percent of their pay towards their retirement benefits for the first five years of their employment…

Yes, that will bring in a huge amount of federal revenue.

TRANSPORTATION SECURITY FEES

The deal would increase the airport security fees paid by airlines to the Transportation Security Administration. A summary of the deal did not provide an amount, but airline industry groups were anticipating a doubling of the fee to $5 per ticket, which would provide $10 billion to $11 billion in revenue over a decade…

But it’s not a tax increase. And, yeah, that will generate billions, too. For sure.

This article was posted by Steve Gilbert on Wednesday, December 11th, 2013. Comments are currently closed.

One Response to “Reuters: Highlights Of The ‘Modest’ Budget Deal”

  1. Other people’s money, etc etc




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