Hill leaders wrangle over two-step deficit process

Source: Politico

Congressional leaders are wrangling over how to create a two-step process that would increase the national debt limit through the 2012 elections, according to officials familiar with the talks.

Heading into a Saturday evening meeting in House Speaker John Boehner's office, congressional leaders were haggling over at least one proposal aimed at breaking a logjam that has the country on the brink of an unprecedented economic default.

Under the plan, Congress would make $1 trillion worth of spending cuts - mainly to domestic discretionary spending accounts, with no tax increases. The national debt limit would increase by about the same amount, allowing the borrowing limit to be extended until January 2012.

To make deeper cuts in the next 10 years, the proposal would create a new special committee of lawmakers who would recommend a more robust series of deficit-reductions by the end of 2011 and establish a process ensuring Congress considers the panel's proposals. The lawmakers are looking at some $3 trillion in cuts over the next decade.

Read more: http://www.politico.com/news/stories/0711/59733.html

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Well, if this is true, and Harry Reid and Nancy Pelosi are going to agree to a short term debt limit increase with no taxes on the table, plus the promise of $3 trillion more in cuts, then they are going to make President Obama look like a left wing hardliner by comparison.

This is the same proposal that President Obama told Cantor that he would not accept. Now, Boehner is trying to backdoor President Obama by reaching the same agreement with Pelosi and Reid with no taxes on the table, which is less than what was offered to the White House.

So, I can't see how Reid and Pelosi undercut the White House by settling on a worse deal with up to $4 trillion in cuts with no commitment on increased revenues coupled with a short term debt increase.

Let the voters decide and elect a government that will lead us down the correct path.

What about the fact that the rating agencies said they would DOWNGRADE our rating unless revenue IS included?
This fact seems to be ignored at the moment.