Daily Debt: A Double Dose of New Deals
It’s official. Everybody in Congress has a debt deal. Too bad they are all different.
Senate Majority Leader Harry Reid’s deal is public, and oddly, it sounds almost exactly like what Republicans were advocating for in the beginning. The proposal would cut the debt by about $2.7 trillion, leaving entitlement programs untouched, but not adding any revenue raisers like rescinding Bush era tax cuts for millionaires or closing corporate loopholes. The majority of the savings — approximately $1 trillion, is expected to come from troop drawdowns in Afghanistan and Iraq.
Speaker of the House John Boehner has finally released his new proposal, the “Two-Step Approach to Hold President Obama Accountable.” As the name implies, it’s only a short term solution, with a $1 trillion ceiling raise in exchange for $1.2 trillion in cuts and caps, and mandates another debt ceiling fight to be scheduled for October, 2011. You know, just in time for elections.
But really, Republicans aren’t at all trying to use the crisis for electoral gain or campaign fodder…
Then there’s House Majority Leader Eric Cantor. He may not have a deal of his own, but at least now we finally know why he was so adamantly against “revenue raisers,” and not just rich people losing their Bush era tax cuts. Turns out Cantor’s been doing some serious scrambling for his biggest constituents — hedge fund managers and private equity firms– who were likely to lose a bundle if proposed corporate loopholes were closed. No wonder Cantor walked in mid-negotiation.
Meanwhile, Iowa Republican Representative Steve King is threatening to impeach the president if the country defaults. Because it’s the president forcing the country into default, apparently.
Tonight, Obama will give a press conference stating we are in “imminent threat of default.” Check back after the conference for more news.
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