Holding out for ransom demands in the form of benefit cuts to Social Security, Medicare and Medicaid, Senate Republicans today again refused to surrender their hostages—the nation’s economy and working families who will be hurt by the upcoming Republican sequester.
Republicans led the charge to defeat a Democratic plan that would have eliminated the across-the-board sequestration budget cuts for the remainder of 2013, which the Congressional Budget Office has estimated would cost 750,000 jobs.
The bill—defeated 51-49 (it required 60 votes for passage)—would have replaced the cuts, in part, with additional tax revenue from millionaires, including adopting the “Buffett Rule,” which sets a minimum effective tax rate of 30% for taxpayers with income higher than $1 million. Continue reading “Republicans Continue Hostage Crisis”
Congressional Budget Office
The Budget Control Act of 2011 (enacted on August 2 as Public Law 112-25) made several changes to federal programs and established budget enforcement mechanisms—including caps on future discretionary appropriations—that were estimated to reduce federal budget deficits by a total of at least $2.1 trillion over the 2012–2021 period. The caps on discretionary appropriations will decrease spending (including debt-service costs) by an estimated $0.9 trillion during that period, compared with what such spending would have been if annual appropriations had grown at the rate of inflation. At least another $1.2 trillion in deficit reduction was anticipated from provisions related to a newly established Congressional Joint Select Committee on Deficit Reduction. That committee is charged with proposing legislation to trim budget deficits by at least $1.5 trillion between 2012 and 2021. However, if legislation originating from the committee and estimated to produce at least $1.2 trillion in deficit reduction (including an allowance for interest savings) is not enacted by January 15, 2012, automatic procedures for cutting both discretionary and mandatory spending will take effect. The magnitude of those cuts would depend on any shortfall in the estimated effects of such legislation relative to the $1.2 trillion amount. Continue reading “Estimated Impact of Automatic Budget Enforcement Procedures Specified in the Budget Control Act”
1 August 2011 by Keith Hennessey 1 Comment
This is the second of three posts on the bill agreed to by the President and the bipartisan bicameral leaders of Congress (Speaker Boehner and Leaders Reid, McConnell, and Pelosi).
The other two posts are:
- Quick summary of the Budget Control Act; and
- Strategic analysis of the Budget Control Act.
If you have not read my quick summary post, please do so before reading this one. I cover three topics in this post: how taxes are treated in the Joint Committee, how the spending cut trigger works, and the intentional imbalance of triggered spending cuts. All three are critical to the strategic analysis. Continue reading “Understanding the Budget Control Act”