Wednesday, August 3, 2011

THE DEBT DEAL...The Devil is in the details

The following is a thread of discussion from a left leaning talk show, hosted by Leo Soderman, discussing the recently passed Debt Deal. It is a sobering reminder of how Washington works and how easy it is to " hi-jack " a piece of legislation. Also, a comparison between the legislative skills of
the Dems and the GOP.

" REVENUES The bill " virtually guarantees a revenue increase by the end of 2012. And Boehner knows it."
Part of the deficit reduction estimates used to sell this deal to the GOP count on Congressional Budget Office estimates ( CBO ). Those estimates set a baseline. All reductions have to come from that baseline and if any additional spending is to be made, offsetting cuts must also be enacted. The CBO baseline assumes that the Bush tax cuts WILL EXPIRE at the end of 2012. The spending levels for 2013 include the additional revenue from those cuts expiring. If the GOP want to extend those cuts, they will have to make cuts in the budget to offset every penny. But they won't have the political control to do that before the end of 2012, even if they take control of the Senate and the White House because the cuts expire in 2012 and new political control wouldn't be seated until January, 2013. So.......the cuts will expire UNLESS the GOP comes up with offsetting cuts. Reid has said he will not allow the tax issue extension to come to a vote in the Senate and the President has said he would veto it anyway. The GOP must offset the tax increase with cuts. of $ 4 TRILLION. These cuts must come in a 50 / 50 % ratio between defense and non defense., with SS, Medicaid, Unemployment Insurance, civilian and military retirement and Medicare off the table.
This means, to extend the tax cuts, the defense budget must be cut $ 2 TRILLION more, in addition to the $ 350 BILLION already cut as part of the current deal. Then, with no social options on the table, another $ 2 TRILLION must be cut as well. "
So, the tax cuts will expire and we have a tax increase...which is already locked in the financial analysis.

Anybody wonder why Romney waited until the final bill to say NO ? All of this crap was inserted by Reid and his folks behind the curtains and many, perhaps most, don't even understand this yet


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