We now have a CBO report on Harry Reid’s plan, and what once again sticks out is the extreme similarities with John Boehner’s. Remember that the Boehner plan had discretionary spending caps, a “Super Congress” committee to recommend deficit reduction, spending on program integrity for several programs, increases in Pell grants offset by student loan changes, and other budget process changes. Here’s the summary by CBO of the Reid plan:
Establish caps on discretionary spending through 2021, including separate caps on new funding for war-related activities;
Allow for certain amounts of additional spending for “program integrity” initiatives aimed at reducing the amount of improper benefit payments and enhancing compliance with tax laws;
Extend and expand authority to auction licenses for part of the electromagnetic spectrum;
Make changes to the Pell Grant and student loan programs;
Reduce certain payments to agricultural producers;
Increase the debt limit by $2.7 trillion;
Reinstate and modify certain budget process rules, and
Create a joint Congressional committee for further deficit reduction.
So that’s pretty much the same. The differences are:
• The budget cap for Afghanistan and Iraq spending, of $50 billion a year, gets you a little over $1 trillion.
• Reid expands the program integrity spending to cover the IRS. Boehner lopped that off, because the last thing we need is people paying their required taxes.
• Other mandatory spending changes. CBO scores the spectrum sale and the reduction in Ag subsidies. They don’t cover one of the items on the Reid plan fact sheet, the incredibly vague $30 billion from “savings to Fannie Mae and Freddie Mac.” But everything else is there. And the Ag reductions were clearly agreed to in the Biden talks, while the government already planned on the spectrum sale.
And now you see why Jack Lew doesn’t want the March baseline to be used. CBO scores this as a $2.2 trillion reduction in the defecit over the adjusted March baseline. Working off what was in the Boehner package, that would mean around $2.4-$2.5 trillion off the January baseline, which was the standard for negotiations. That’s a significant difference. And it shows that Reid’s plan missed the mark by about the same amount as Boehner’s – remember that Reid wanted $2.7 trillion in deficit reduction.
The discretionary spending caps are the same in both documents. Nobody spells out the spending cuts, leaving it up to the appropriators to work under the limit. The Reid Catfood Commission would have “a goal of reducing the deficit to 3 percent of gross domestic product or less,” according to CBO. So they would have a somewhat defined target, although not a dollar amount like Boehner’s.
The fact that the Boehner and Reid plans are so similar, including the Pell grant spending and everything else, means that they were basically negotiated together, as something the White House would accept. Reid threw in a few more bells and whistles, scored the war savings, and increases the debt limit all at once. Boehner uses a second tranche of the debt limit to force through any Catfood Commission II changes.
The White House is talking about blending all the plans on the table if they fail, “combining elements of the Boehner and Reid proposals and another from Sen. Mitch McConnell (R-KY) so each can claim a measure of victory.” They’re already blended! It’s just a matter of when the debt limit is increased, and who can declare victory.
UPDATE: First Read writes that a short-term extension, by about 10 days or so, is looking more and more likely.




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Oh how surprising! Trillions in cuts, no tax increases. Hoover has given away the political argument, the policy argument and the money. But he saved Social Security!!!! (not because he didn’t want to gut it, and will sure keep trying). 2012 is shaping up to be an epic battle of Hoover v. Coolidge. So excited! Can’t wait but meantime the NFL is back so the debt or deficit or whatever we call this distraction will quietly melt away until the off-season.
What’s up is down. What’s black is white. What’s democrat is republican.
LAROUCHEPAC:
Obamawatch
Obama-Boehner Debt Game Dooms U.S.A. If Not Stopped
July 27, 2011 • 10:13AM
Lyndon LaRouche warned today that the United States may be doomed within weeks, if the debt game being played by President Obama and Speaker Boehner is allowed to play out. When all is said and done, the combination of Schachtian austerity and hyperinflation that underlies all of the so-called “competing” plans for solving the debt ceiling and the Federal debt, will doom the United States to certain destruction. The only alternative, as LaRouche Democrat Kesha Rogers declared in a public statement released last night after the Obama and Boehner TV appearances, is to “cut the bullshit” and pass Glass- Steagall and remove President Obama from office by invoking the 25th Amendment.
While President Obama’s nationally televised address from the White House on Monday night was prompted by briefings over the weekend that he had been completely abandoned by his core 2008 voter base, his 15-minute attack on the Republican budget plan only made voters more angry at him. This is not a zero-sum game. Voters are enraged at the sheer corruption and incompetence of the entire “political class” in Washington, and at the leadership of both political parties, who are seen as contemptible losers who are destroying the country by their foolishness.
The fix is in. The plutocrats are “fighting” over enacting the same fucking austerity plan.
Hjalmar Schacht
From Wikipedia, the free encyclopedia
Hjalmar Schacht
Reich Minister of Economics
In office
August 1934 – November 1937
I think the news today is that after both sides got CBO scores that said they didn’t cut as much as they each claimed, both sides set to work to make their respective plans even worse. Brilliant. We are ruled by idiots.
Why is there such a big difference between the January baseline and the March baseline? I thought the deal to prevent the government shutdown was only $38 billion in cuts. Did Republicans somehow sneak in even more cuts into that deal?
… and the more dire the fabricated crisis gets, the more the plutocrats believe the plebs will be persuaded that some compromise was made for the rich to share in the sacrifice.
This is a fucking lie.
And notice that Monday night, President Worse than Hoover urged Americans to call Congress and tell them to demand taxes to “balance” spending cuts. And today, he says, “.never mind!”. Just combine idiot plan A and idiot plan B and we’re good.
Why would any soldier charge up a hill for this Commander in Chief. You’d be abandoned half way up the hill.
He is the president. His words carry weight.
He might as well have told us all to go shopping.
President Barack Hoovsein Obama
DING! It’s easy enough to see, even without CBO score, because they both contain the super congress in them.
A sack of shit also carries weight.
and to add to the idiocy, the CBO forecasts for fed govt budget macro (deficits, surpluses, etc) are total nonsense. they’re not even using a non-bogus measure!
He did tell us to “eat our peas” while he his colleagues in the political class sip champagne and eat caviar. The political class is completely corrupt and when corruption is so pervasive their is only one recourse.
You know the really sad thing though? Even now, when he asks, people respond. They shut down the damn congressional communication system.
Part of me still believes that if he did a complete 180 he could mobilize the country to any level of protest or action necessary to put these traitorous fuckers on the road.
damn straight.
but then how should we refer to senator demint? (h/t warren mosler)
That was last year, and the $38 billion in cuts transmogrified into an actual increase. It’s actually one large reason the Tea Party crowd are so adamant about real cuts. Not phony slower rate of increase type cuts.
Real cuts, and no tax increases, or Mr. Obama will be on the spot to decide who gets what, with a 42% smaller purse.
The Donald say the GOP should force default, because it’ll prevent Obama’s re-election.
Do we think they are really going to cut spending? Maybe I am naive but it seems to me they are going to keep the status quo. Maybe someone can enlighten me.
The Super Congress is what they are really trying for IMHO. Fascism will be complete in the USA.
David,
Thanks for this thread.
And I went to twitpic.com to ‘read’ the Reid Plan. Sadly, I found nothing that relates to “transparency” relative to the “specifics” of all spending cuts. Therefore, this document has been strictly crafted to “protect” the incumbents in next year’s re-election efforts. Consequently, “political cover” is being provided to all, including those who will vote affirmatively as well as those who, when they do vote, will be listed in the Nay Column.
And as a citizen here in the Hinterlands, I have learned “nothing” that is emanating from both the Boehner and Reid Plans. Therefore, I am not being afforded the opportunity to “yardstick” any of these Plans, including the Biden Negotiations, given their respective lack of transparency, since ‘nothing’ of consequence relative to “details” or the particulars that are being cut.
Take, for example, are our Ports of Entry being scaled back or are these Ports of Entry being upgraded relative to both Economic Development i.e., Canada and Mexico, and is any comprehensive immigration reform being implemented, despite the recent HATE Act being introduced in the House?
Unfortunately for me, Obama, Biden, Reid, and Boehner, are intentionally keeping me ignorant relative to any specificity for these spending cuts.
Jaango
interesting
so a Lyndon LaRouche supporter is now breaking through the site to post adds and comments without a registered name, copying the technique of the far east ad persons.
And London bankers control us rather than Wall Street Bankers.
I have not seen Lyndon since early 80′s in New Hampshire – tell him he ran a quick learner in the Democratic primary against Barney Franks – in 6 months she became much more viable – wrong on history and issues but she could articulate her position.
So as soon as the Democrats capitulate and add in Boehner’s Catfood Commission cuts, they are “done”.
“Boehner uses a second tranche of the debt limit to force through any Catfood Commission II changes.”
Then we are stuck with the future cuts that no sane politician would vote for but that this debt ceiling bill provides plausible deniability for.
CBO fed govt budget forecasts are total nonsense??
Well they use current law and therefore assume Clinton tax rates restored for all brackets, and they are not the “dynamic, showing tax cuts increase tax revenue” approach the GOP want, but is there some other reason they are “nonsense”?
I agree. That will be where all the cuts to the safety nets will happen.
Boehners plan is DOA as his party is sucking up to the teapeckers and can’t get any dem support.
Reid is a doddering old fool who is proposing a plan trying to suck up to the right and the president. Any dem who votes for this plan should be targeted for 2012.
Obummer has failed to tell people the truth time after time. How much money has he and Geitner raided from the SS fund that they cannot pay SS on aug3. This is contrary to the ss act which requires the Treasury secretary to have this money available. Also is it a coincidence that the individuals being targeted by the repub voter id laws are the same individuals Obummer was willing to throw under the bus? I think not. I believe an investigation would find that the money that should be in the SS fund is in fact not there. Hence, congress and Obummers desire to cut SS to try and make up the money they have embezzled from the fund.
Why not just take a up or down vote on the ceiling or better yet just eliminate a law that serves no useful purpose except to waste congressional time bickering over a stupid rule. Finally, the best move for both sides is to do nothing and require Obummer to use the 14th, if he has the bongos to do so.
But we don’t know why people were calling Monday night. They might have been pissed off that he preempted their sitcoms.
Plan 1234223 from column A or Plan 1234223 from column B?
The people’s representatives will decide, Mr. Simpson explains.
Everyone should be outraged over this:
“Create a joint Congressional committee for further deficit reduction” – the Super Committee
if you even remotely believe in democracy.
Sorry, but this Wall Street President will not be doing any 180′s. You may hear wonderful, populace speeches between now and election day which have nothing to do with reality.
because the $38 billion sets a new baseline going forward. If spending increases at the rate of inflation for the next ten years, it increases more slowly. Not to mention that the $38 billion is wiped out for the next nine years. And so cuts in one year magnify for ten.
And that’s no coincidence. When national populations are economically stressed, they turn to authoritarianism. That’s the end game.
Seems excessive. Obama was already defeated in 2008, or was it 2009?
He’s the No.1 traitorous fucker, the leader of the pack.