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WH Fact Sheet On Debt Deal – Read & Weep

From the taxpayer funded White House website:

Fact Sheet: Bipartisan Debt Deal: A Win for the Economy and Budget Discipline

Bipartisan Debt Deal: A Win for the Economy and Budget Discipline

  • Removes the cloud of uncertainty over our economy at this critical time, by ensuring that no one will be able to use the threat of the nation’s first default now, or in only a few months, for political gain;

How "bipartisan" of the White House to kick off the list by accusing the Republicans of holding the economy hostage. And never mind that it was Obama who wanted the deal to be unnaturally long in order to keep this from being a campaign issue.

The average length of debt ceiling increases has been less than seven months since 1972. One of Mr. Obama’s increases lasted less than two months.

  • Locks in a down payment on significant deficit reduction, with savings from both domestic and Pentagon spending, and is designed to protect crucial investments like aid for college students;

There are no deficit reductions. There is an ever so slight decrease in the rate of the spending increase which is built-in, thanks to baseline budgeting. This deal ‘locks in’ Obama’s runaway spending. (A 24% increase in non-defense spending.) It also locks in draconian defense cuts, while taking any entitlement reform off the table.

  • Establishes a bipartisan process to seek a balanced approach to larger deficit reduction through entitlement and tax reform;

Except that we are later told that all entitlement reform is off the table, except for payment to "Medicare providers," who are doctors. And, of course, "tax reform" means higher taxes.

  • Deploys an enforcement mechanism that gives all sides an incentive to reach bipartisan compromise on historic deficit reduction, while protecting Social Security, Medicare beneficiaries and low-income programs;
  • Stays true to the President’s commitment to shared sacrifice by preventing the middle class, seniors and those who are most vulnerable from shouldering the burden of deficit reduction. The President did not agree to any entitlement reforms outside of the context of a bipartisan committee process where tax reform will be on the table and the President will insist on shared sacrifice from the most well-off and those with the most indefensible tax breaks. 

By the way, the url for this page begins: http://www.whitehouse.gov/fact-sheet-victory.

Mechanics of the Debt Deal

  • Immediately enacted 10-year discretionary spending caps generating nearly $1 trillion in deficit reduction; balanced between defense and non-defense spending.
  • President authorized to increase the debt limit by at least $2.1 trillion, eliminating the need for further increases until 2013.   
  • Bipartisan committee process tasked with identifying an additional $1.5 trillion in deficit reduction, including from entitlement and tax reform. Committee is required to report legislation by November 23, 2011, which receives fast-track protections. Congress is required to vote on Committee recommendations by December 23, 2011.

Doesn’t this mean that the debt panel is going to steal Thanksgiving and Christmas?

  • Enforcement mechanism established to force all parties – Republican and Democrat – to agree to balanced deficit reduction. If Committee fails, enforcement mechanism will trigger spending reductions beginning in 2013 – split 50/50 between domestic and defense spending. Enforcement protects Social Security, Medicare beneficiaries, and low-income programs from any cuts.

So only soldiers and doctors will be cut. Not any Democrat constituents.    

1. REMOVING UNCERTAINTY TO SUPPORT THE AMERICAN ECONOMY

  • Deal Removes Cloud of Uncertainty Until 2013, Eliminating Key Headwind on the Economy: Independent analysts, economists, and ratings agencies have all made clear that a short-term debt limit increase would create unacceptable economic uncertainty by risking default again within only a matter of months and as S&P stated, increase the chance of a downgrade. By ensuring a debt limit increase of at least $2.1 trillion, this deal removes the specter of default, providing important certainty to our economy at a fragile moment

No "headwind" has been eliminated, let alone a "key" headwind. The average length of debt ceiling increases have been less than seven months since 1972. One of the three debt limit increases under Obama was for less than two months. This is simply nonsense.

The real "key headwind" is government spending. Both S&P and Moody’s have said that the government needs to make credible spending cuts of at least $4 trillion over ten years. And this plan does not do that.

  • Mechanism to Ensure Further Deficit Reduction is Designed to Phase-In Beginning in 2013 to Avoid Harming the Recovery: The deal includes a mechanism to ensure additional deficit reduction, consistent with the economic recovery. The enforcement mechanism would not be made effective until 2013, avoiding any immediate contraction that could harm the recovery. And savings from the down payment will be enacted over 10 years, consistent with supporting the economic recovery.

In other words there will be no spending cuts until after the 2012 elections. So Mr. Obama will get his $2.4 trillion dollars of ‘walking around money’ with no strings attached. Which is all this was about in the first place.

2. A DOWNPAYMENT ON DEFICIT REDUCTION BY LOCKING IN HISTORIC SPENDING DISCIPLINE – BALANCED BETWEEN DOMESTIC AND PENTAGON SPENDING

  • More than $900 Billion in Savings over 10 Years By Capping Discretionary Spending: The deal includes caps on discretionary spending that will produce more than $900 billion in savings over the next 10 years compared to the CBO March baseline, even as it protects core investments from deep and economically damaging cuts. 

Meaning that it will be a cap on the increase, since the CBO baseline includes built-in increases.

  • Includes Savings of $350 Billion from the Base Defense Budget – the First Defense Cut Since the 1990s: The deal puts us on track to cut $350 billion from the defense budget over 10 years. These reductions will be implemented based on the outcome of a review of our missions, roles, and capabilities that will reflect the President’s commitment to protecting our national security.

These are the military cuts that have already been counted. And they come on top of the $400 billion that Mr. Obama has already cut from the Pentagon’s budget. Let’s hope that there will be no wars in the next ten years. 

  • Reduces Domestic Discretionary Spending to the Lowest Level Since Eisenhower: These discretionary caps will put us on track to reduce non-defense discretionary spending to its lowest level since Dwight Eisenhower was President

No rational person can possibly believe this claim. Government spending is currently 24% of the GDP. It is historically (only) 18 to 19%. This is just laughable propaganda. Suddenly the administration ‘likes Ike.’

  • Includes Funding to Protect the President’s Historic Investment in Pell Grants: Since taking office, the President has increased the maximum Pell award by $819 to a maximum award $5,550, helping over 9 million students pay for college tuition bills. The deal provides specific protection in the discretionary budget to ensure that the there will be sufficient funding for the President’s historic investment in Pell Grants without undermining other critical investments. 

3. ESTABLISHING A BIPARTISAN PROCESS TO ACHIEVE $1.5 TRILLION IN ADDITIONAL BALANCED DEFICIT REDUCTION BY THE END OF 2011

  • The Deal Locks in a Process to Enact $1.5 Trillion in Additional Deficit Reduction Through a Bipartisan, Bicameral Congressional Committee: The deal creates a bipartisan, bicameral Congressional Committee that is charged with enacting $1.5 trillion in additional deficit reduction by the end of the year. This Committee will work without the looming specter of default, ensuring time to carefully consider essential reforms without the disruption and brinksmanship of the past few months

And absolutely nothing will come of this Congressional Committee. Just like nothing has ever come from a Congressional Committee.

  • This Committee is Empowered Beyond Previous Bipartisan Attempts at Deficit Reduction: Any recommendation of the Committee would be given fast-track privilege in the House and Senate, assuring it of an up or down vote and preventing some from using procedural gimmicks to block action.
  • 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

There it is: "revenue-raising tax reform." In glorious black and white. So what is the great victory for Republicans, again? When has a debt ceiling increase ever been used as a tool to increase taxes?

4. A STRONG ENFORCEMENT MECHANISM TO MAKE ALL SIDES COME TOGETHER

  • The Deal Includes An Automatic Sequester to Ensure That At Least $1.2 Trillion in Deficit Reduction Is Achieved By 2013 Beyond the Discretionary Caps: The deal includes an automatic sequester on certain spending programs to ensure that—between the Committee and the trigger—we at least put in place an additional $1.2 trillion in deficit reduction by 2013
  • Consistent With Past Practice, Sequester Would Be Divided Equally Between Defense and Non-Defense Programs and Exempt Social Security, Medicaid, and Low-Income Programs: Consistent with the bipartisan precedents established in the 1980s and 1990s, the sequester would be divided equally between defense and non-defense program, and it would exempt Social Security, Medicaid, unemployment insurance, programs for low-income families, and civilian and military retirement. Likewise, any cuts to Medicare would be capped and limited to the provider side.

In other words, these caps are going to be just like the deals that were implemented under Ronald Reagan and George Herbert Walker Bush. Deals in which the Republicans were outrageously swindled.

  • Sequester Would Provide a Strong Incentive for Both Sides to Come to the Table:  If the fiscal committee took no action, the deal would automatically add nearly $500 billion in defense cuts on top of cuts already made, and, at the same time, it would cut critical programs like infrastructure or education.  That outcome would be unacceptable to many Republicans and Democrats alike – creating pressure for a bipartisan agreement without requiring the threat of a default with unthinkable consequences for our economy. 

5. A BALANCED DEAL CONSISTENT WITH THE PRESIDENT’S COMMITMENT TO SHARED SACRIFICE

  • The Deal Sets the Stage for Balanced Deficit Reduction, Consistent with the President’s Values: The deal is designed to achieve balanced deficit reduction, consistent with the values the President articulated in his April Fiscal Framework. The discretionary savings are spread between both domestic and defense spending. And the President will demand that the Committee pursue a balanced deficit reduction package, where any entitlement reforms are coupled with revenue-raising tax reform that asks for the most fortunate Americans to sacrifice.  

There it is again. Any cut to entitlements will have to be matched by a hike in taxes.

  • 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.

In other words, this deal locks in the end of the Bush tax cuts. Which means it locks in the biggest tax increase in American history.

  • In Securing this Bipartisan Deal, the President Rejected Proposals that Would Have Placed the Sole Burden of Deficit Reduction on Low-Income or Middle-Class Families: The President stood firmly against proposals that would have placed the sole burden of deficit reduction on lower-income and middle-class families. This includes not only proposals in the House Republican Budget that would have undermined the core commitments of Medicare to our seniors and forced tens of millions of low-income Americans to go without health insurance, but also enforcement mechanisms that would have forced automatic cuts to low-income programs. The enforcement mechanism in the deal exempts Social Security, Medicaid, Medicare benefits, unemployment insurance, programs for low-income families, and civilian and military retirement.

Once again, Mr. Obama declares that he will never reform entitlements. Which he himself has said are unsustainable in their current form. This is what he calls being a grown up. Being fiscally responsible.

But there is the deal in all its glory. If this is victory, we would hate to see defeat.

This article was posted by Steve Gilbert on Monday, August 1st, 2011. Comments are currently closed.

28 Responses to “WH Fact Sheet On Debt Deal – Read & Weep”

  1. proreason

    It could have been worse, MUCH worse.

    There is a reprieve from tax hikes until the unaccountable committee decides that they are necessary.

    That alone is worth celebrating.

    Of course, the marxists will figure out a way to slip some in anyway.

    The rest of the good news is that Boner and Mitchell have ripped off their shirts and proudly declared their allegiance to more governement spending.

    It’s always useful to know who the enemy is.

    • Petronius

      Good working definition of a conservative : someone who understands that things could always be worse than they are.

  2. BigOil

    Thanks for sifting through this steaming pile for us Steve.

    My favorite spending cut is increasing the Pell grants for college students. Lord knows we desperately need more indoctrinated youth with college degrees living in their parents basement.

  3. tranquil.night

    “There it is: ‘revenue-raising tax reform.’ In glorious black and white. So what is the great victory for Republicans, again? When has a debt ceiling increase ever been used as a tool to increase taxes?”

    Wait, you mean John Boehner, Mitch McConnell, AllahPundit, and the rest of the Establishment media were lying to us when assuring us the committee was structured in such a way as they can’t get tax increases? How unexpected.

    Erick’s still not playing the fool

    And if we’ve learned nothing else these past few weeks, the GOP fears more than anything else what the Democrats say about them. Don’t believe me on taxes, then ask GOP leadership why they haven’t put in a clear statement prohibiting them or, even better, why there is no prohibition on decoupling the middle class Bush tax cuts from the upper income Bush taxes cuts.Last week in the Washington Post, the GOP Leadership in Congress planted a hit job about me. How do I know they planted it? If not obvious from the story itself, it was from the conversation between the reporter and those she talked to.

    One of the “attacks” on me was that I was too predictable. Yes, it is true. I am predictable conservative and am not willing to sell out my conservatism for the team. I hate to break it to you.

    Well, Erick’s predicted the Republican Leadership’s every move. So if the Establishment finds us predictable, when all we’re doing is predicting what they’re doing, then I think that says everything we need to know: they’ve always just been looking for ways to get around us. At least it’s in the open now and we can get over the uncomfortable “Incompetence or Intentional” period!

    Also, as predicted here:

    The alternative for the GOP would be seeing massive defense cuts and being blamed for senior citizens seeing their medicare cut. “But,” House Republican leaders exclaim, “the cuts would not be to beneficiaries.”

    True, the cuts would be punishing doctors who will respond by denying access to medicare patients.

    The Democrats are happy to force through taxes in the committee and then, when the GOP opposes them, claim the GOP would rather hurt our soldiers and seniors than raise taxes on “fat cat millionaires.”

    Yeah, that’s because the debt committee has no prohibitions against looking at allowing the Bush Tax Cuts to expire, or incorporating some of the Gang of 6’s ideas like the Capital Gains Tax hike.

    Big fat Ruling Class fraud. They knew they lost this round (and the meltdown on the Left was almost enough for me to support the final deal if it weren’t still so awful) so they cut their losses and stacked the deck against us specifically in the next round. Let’s hope a bigger chunk of the Tea Party that originally signed onto the Boehner deal jumps off that line when they realize what a capitulation this really is. Let them get have their bipartisan compromise if they can manage to get Pelosi’s bunch to swallow it. Those on our side who vote against it really are heroes for holding out against our pathetic leadership.

  4. Reality Bytes

    Well! At least we still got IN GOD WE TRUST. Good thing cause you can’t trust these morons any further than I can throw Jerold Nadler.

    We’re gonna need another round or three of outgoing encumbents.

    • Right of the People

      That the first thing that entered my mind when I read this crap that we need us a whole new set of Senators and Representatives.

      Get out the pitchforks and torches people!

  5. TerryAnne

    Ok…I’m a little off in the realm of economics (the nuances bore me to tears, so I can’t stay awake long enough to fully learn it, lol). Anyway, doesn’t this statement from the article (Deal Removes Cloud of Uncertainty Until 2013, Eliminating Key Headwind on the Economy:) imply that there will be more money printed between now and 2013, thus driving inflation up?

    Pardon if it’s a dumb question or idea…but that’s what popped in my head while reading that and the gobble-de-gook that followed it.

    • tranquil.night

      You’re exactly right TA. I don’t blame you for not having much patience for voodoo economics. You probably wonder why the Feds don’t just run a balanced budget like we all have to if we hope to grow our wealth. You little terrorist hobbit!

      If we were to finish the title of the report “…and we’re still doomed at this rate.”

    • proreason

      It’s a propaganda line from the Pravda professionals.

      Behind the scenes, everybody knows that the main reason the economy isn’t moving forward is that businesses are scared shitless of the Moron, since it is plainly obvious that he hates business with a blind passion and is determined to take all of the assets from wealth creators and buy votes with it. For example, businesses are sitting on $2T in cash that they won’t invest in new capabilities (i.e., job creation), because they will lose the investment because it will be regulated away, taxed away, and otherwise punished away.

      The same fear is also felt by consumers, btw. You, like almost everyone, are being more and more careful what you buy because you know that the marxists are determined to break your back financially. And it isn’t just gas and groceries. You would like a new car but aren’t going to commit to $450 car payments with satan in the white house. Nobody is changing their house. Too risky. People who have jobs are clinging to them. They can’t afford to take a chance on a new employer. All of this caution has a VERY SIGNIFICANT impact on economic activity.

      I don’t think the line has anything to do with inflation. The White House wouldn’t allow a hint of inflation to enter anything they spew out….unless, of course, they can figure out a way to blame Bush for it.

      So the propagandists at the White House have taken that known fear (which they of course won’t acknowledge) and are claiming that it is a fear that “the economy isn’t moving because business was uncertain about what would happen if the debt ceiling wasn’t raised”. Like many of their lies, there is a 1% grain of truth in that. It was a fear, one that was at the same level of fearfulness as an asteroid hitting the planet.

    • tranquil.night

      Pro, it’s hard to declare any specific post your finest because they’re all so wise but this one is my favorite yet. So well said!

    • TerryAnne

      Whew…cool. Thanks for both of y’all’s responses. :) I’m interested to see how they will hide inflation. We haven’t been living under the socialist screen for enough generations yet for them to be able to fluff it over. Speaking of which…it’s quite amazing that we’re experiencing just about everything a socialist empire does over a couple of tenures in just 3 short years.

      tn – the little terrorist hobbit comment almost made me fall out of my chair. LOL!

  6. Removes Cloud of Uncertainty Until 2013
    So we’re trading uncertainty now for monumental uncertainty after the election? Great. At least Obama got $2T to spend on his re-election campaign,

    Also, can someone please inform the media that if they use the phrase “harm the recovery” one more time I’m going to go postal. That’s right! I’m going to go out and flush $8.5 billion dollars down the toilet, and then raise prices while cutting my work week down to 3 days! SO THERE!!! How can you harm something that doesn’t exist? There is no, nor has there been any kind of recovery.

    Will 2012 bring recovery summer #3??!! Growth in the economy was 0.4% in the first quarter for god’s sake. And at the same time the government is basing their spending on 8% growth EVERY YEAR!! HELLOOOOOOO!!!!!

    Our AAA credit rating has already been sacrificed on the alter of Obama. Talk about shared sacrifice. The American people get sacrificed and Obama shares our money with unions and buys votes from welfare junkies, illegals, and the dead. The only thing this deal does for America is close the lid on our economic coffin. Now we’re just waiting for the nails, and the dirt to get thrown in on us.

    • proreason

      I don’t want to rain on your parade, untrainable, but the .4% “growth” would be negative 1-2% if the Liar in Chief hadn’t robbed your childrens’ piggy banks in order to “inject” money into his salivating supporters veins, in the form of “stimuli”, “tax credits”, “subsidies” and various other methods of vote buying.

      Government spending counts toward the Gross Domestic Product.

      In a sane world, government spending would be SUBTRACTED from Gross Domestic Product, because that is exactly what it does.

    • You’re right as usual Pro. But rain would be a welcome change. Obama has been pissing on my future and telling me it’s raining for 3 years now.

  7. proreason

    Fears Confirmed.

    “Did Obama Get Rolled?” http://www.tnr.com/blog/jonath.....get-rolled Jonathan Chait

    If this srially orgasmic marxist tub-thumper is criticizing his Messiah, it can mean only one thing: Chait thinks the Boy King has pulled off a brilliant caper, and his palpitating sychophantic stenographer is desperate to hide the evidence from the voters.

    • tranquil.night

      Yep, listening to these Ruling Class types pay us tribute. We’re staring at one big, fat Trojan horse.

      Yet if we do the right thing and vote it down? Why, the fury of the market gods upon us!

    • proreason

      And now little paulie has called the deal “abject surrender”. Further proof that conservatives have got the shaft..we just aren’t sure how yet.

      No link to little paulie. His salary is partly dependent on hits.

    • TerryAnne

      I’m pretty sure the hit/shaft is in that a version of McConnell’s plan made it in; in that, if no cuts or if not enough cuts are identified by 23 December, Zeros gets a blank check for both cuts and spending.

      The shaft comes in when the Dems start railroading any attempts at true cuts (that don’t involve simply gutting the military). I expect a 3-7% tax increase coming up (not counting the tax increases we’ll start seeing for OCrapCare, too). Especially since it will all be just in time for 1 January 2012.

    • proreason

      I’m pretty sure there won’t be any tax increases before Nov 2012, other than the deeply hidden ones in Obamycare and the Dodd/Franks Financial Torpedo legislation already passed.

      Of course, new taxes would thrill Obamy’s base, which doesn’t pay any taxes or has legions of lawyers to get out of paying.

      But they know that the 52% of the country that DOES pay taxes, will be even more inflamed if they pass new ones, and the last thing they want is a 100% turn-out of taxpayers.

      The bigger threat for tax increases is from Republicans, who we know love taxes nearly as much as the marxists. They would love to increase taxes now, but are afraid to. I’ll bet they do in 2013 though.

  8. tranquil.night

    Sean’s blowing all sorts of holes in this Trojan horse. He just said he wanted to know who was going to be appointed to the committee before the vote. Haha.

    They’re bringing the heat. Can’t wait to hear Levin.

    • tranquil.night

      Alright, and in come the Generals: http://hotair.com/archives/201.....imit-deal/

      I essentially agree with Tina, if Mittoast is reading the sustainable Tea leaves and is looking to rebuild some bridges, that was solid first brick, pandering or not. Gonna take a lot more though.

      T-Paw’s campaign had their now signature witty zinger, too.

    • proreason

      It’s a good sign that even Romney and tPaw are coming out against the deal. Basically it’s a free card. Why not take it.

      Romney was pretty smart to stay out of the fray and then jump on Obamy’s back with his claws out at the end. That way he got to hear the whole blah blah and tune his message. More power to him for that. It ain’t beanbag.

      I’m voting for a fighter. Every time one of them slams the narcissistic lying corrupt marxist coward, he gets a point.

  9. Reality Bytes

    The Devil reads Pravda…He’s also the editor. “Though Shalt Not Steal” God the Almighty. Can’t wait for Obama’s come back on that. Or will he quote Christ, “Render unto Ceasar (aka Barry) that which belongs to Ceasar”.

    Course with an all $900 in charity – not to mention his billing secret service for protecting him, we all know Biden doesn’t abide by the second line of that, “but render unto God that which belongs to God”.

    Hypocrits…putting our money where their mouth is.

    • Kytross

      Our money says “In God we trust” on it; utilizing Christ’s argument we should be giving our money to God.

      But their argument would be that Barry is their messiah.

      Fools

  10. “If this is victory, we would hate to see defeat.”

    Indeed. I do believe that the Left is genuine when they claim to be upset with the deal and that these cuts are too much for them. But it’s worth noting that a level of spending reform that infuriates them is still not enough to keep America safe from a credit downgrade.

    Which puts a different spin on ‘extremist hostage-takers,’ doesn’t it?

    As for what will come of the commission, tax hikes, etc., I am also not optimistic. But the Tea Party and the House Republicans are not out of tricks yet, and they likely plan to fight tooth and nail on all of the points made in this post.

  11. bill

    Obama facts are like pigeon poop after it rains. Nobody say the pigeon do it.

  12. captstubby

    A fine mess we’re in Olly!


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