UPDATE: Boehner sent a Power Point to his caucus on the new deal. I still need to read it myself, but I wanted to convert it and get it to you. Click each one to blow it up if you need to:
UPDATE: Obama just gave a short speech on the new debt limit deal (8:40PM):
Ok, as best I can tell, here’s what I know of the tentative deal worked out last night:
- 2.4 Trillion in debt limit increase and 3 trillion in cuts – all in two stages, both stages to occur this year.
- Stage 1 – 900 billion in cuts over 10 years immediately
- Stage 2 – 1.8 trillion in cuts (over 10 years I assume) to be determined by committee later this year. If recommended cuts aren’t approved by House and Senate, cuts will happen across the board and here is rough outline of those across the board cuts:
One source familiar with the talks noted that while the Medicare cuts would be capped, defense cuts would not and would make up roughly half of the total cuts. This mechanism could help compel Republicans avoid the “trigger” entirely by working through the commission to achieve deficit reduction.
I bolded in the above quote what bothers me about this deal. Call me cynical, but I see these across the board defense cuts being held hostage for tax increases later this year. I mean, we are talking about a President who is willing to, at least rhetorically, hold defaulting on our bills hostage and threaten the American people that they won’t get their Social Security and veteran checks. So why would I believe that this won’t repeat later this year with the President and the Democrats holding roughly 90 billion per year in defense cuts hostage for tax increases?
Sure, the Democrats at this point aren’t getting what they wanted originally in this deal and some are suggesting that is reason to celebrate. But they still may get it yet and that’s what bothers me about this plan. Well that, and the fact that it doesn’t really do anything to change our trajectory and I’m not sure how we can enforce cuts for future Congresses.
Also will be putting live feeds of both the Senate and the House arguments today. Check back shortly.
SENATE LIVE FEED:
House is adjourned until tomorrow morning at 10am.