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.

Related posts:

Daily Debt: Another Missed Deadline

Daily Debt: Ashes, Ashes, It All Falls Down

Daily Debt: Everyone Signs On To Pledge That Will Never Pass

Photo credit: revisorweb


Danny Wilson
Danny Wilson6 years ago

It's all BS. Raise taxes on the top ten and corpserations to 1961 levels the deficit would be paid off in 10 years. Problem solved. Add a nice little deficit tax and everything is funded. And don't forget that corpserations are now sitting on almost 2 trillion in cash....

Glenn M.
Glenn Meyer6 years ago

Cutting spending on, so called, entitlements is ineffective for addressing the deficit. Cutting programs that support the low and middle class will further strain both who don’t even receive lower prices as a result of the U.S. job losses and create a disconnect that will end in another financial collapse. The justification for attacking government benefits as opposed to raising taxes is the creation of jobs. But where?

Corporations have over-powered our government which now believes that out-sourcing and off-shoring of U.S. jobs is inevitable and necessary with expectations that the middle class should fall on their swords. It is the underlying cause of the financial collapse and borders on national security with the loss of our middle class tax base. Yet, this nation does nothing, not even demand it be restricted by whatever method. International businesses are doing the UN-AMERICAN activity of destroying U.S. salaries, U.S. businesses that hire in the U.S., and as an end result, destroying the U.S. marketplace while still demanding BUSINESS ENTITLEMENTS and protections for themselves.

Infrastructure spending and tax breaks will not replace enough jobs to keep up with the hemorrhaging loss of U.S. jobs from out-sourcing over seas. Neither party will do anything about it unless we begin grass roots efforts to protest out-sourcing and off-shoring of U.S. jobs. If nothing is done we will deserve what we get and it will get a lot worse before it gets better

Sue Touchette
.6 years ago

I think it's all a horse and pony show the theives in DC put on for their constituents (us)

Lori Ann Hone
Lori Hone6 years ago

Recall all Republicans!!!!

Steve R.
Steve R6 years ago

How did your social security or pay increase work out for you this year? Was it comparable at all to the increases that Obama gave his staff during this difficult financial period?

Top pay raise of 86% increase was to the Kevin Lewis, Director of African-American Media.
What the Hell is that? The guy must have done a great job doing whatever the Director of African-American Media does these days.

Other ludicrous increases while they attempt to cut your social security that you have paid for and that they were NEVER ENTITLED TO EVEN TOUCH!

Matthew Vogel - $71,400 to $130,500 - 83%!
Heather Zichal - $100,000 to $140,000 - 40%
Elizabeth Olsen - $76,500 - $110,000 - 44%
Elizabeth Nelson - $45,900 - $75,000 - 63%

There are many more - averaging out at 50% pay raise for the top 20!



So how's that hopey changey thing working out huh?

Oh - you didn't understand that it meant you were to hope there was some small change left for you?

If you voted for Obama in 2008 to prove you weren't racist, you'll have to vote for someone else in 2012 to prove you're not an idiot!

Mercedes Lackey
Mercedes Lackey6 years ago

"Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats." H. L. Mencken

Bruce S.
Bruce S6 years ago

In a previous story, the writer of this story characterized Social Security, Medicare and Medicaid as "entitlement programs". Social Security & Medicare aren't "entitlement programs". I paid into Social Security & Medicare for 50 years. Medicaid, on the other hand, certainly IS an entitlement program and shouldn't be confused with programs that people have actually paid for.

Mike B.
Michael Barnes6 years ago

This is about Republicans and Tea Party fanatics who want to see Obama fail at any cost so someone even MORE conservative can retake the White House in 2012.

I voted for Obama. That said, his compromises may be giving them more than they would have gotten with McCain, although Palin would probably have killed him and destroyed us at a much quicker pace.

Temperance Ropple



Terry King
Terry King6 years ago

Can you say extortion boys and girls?