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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:


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.)


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.


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.


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.


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 on Wednesday, December 11th, 2013. Comments are currently closed.

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

  1. GetBackJack says:

    Other people’s money, etc etc

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