The President moments ago announced a budget ceiling deal. Details still coming out but my guess is this will have a tough time getting through the House. Details below the fold but one thing you should know, the bond rating services seem to indicate all this does is solve the short term deal. Long term term still heading toward the cliff.
I’ll have video and audio from tonight on the show tomorrow. But here’s the question in the first hour? Is this a victory for the Tea Party. After all, it cuts the rate of debt growth and no taxes BUT the debt continues to climb. Here’s why. The President budget called for a $10 trillion increase in the national debt. With this … debt should only increase $7 trillion. Victory? Word is balance budget amendment is still alive too.
This from the Hill. The Republicans get spending cuts, some now, some later, Obama gets his debt ceiling increase. No new taxes.
Congressional sources familiar with the outlines of the deal say it would cut the deficit by about $2.8 trillion and raise the debt limit by a similar amount. The deal includes $1.2 trillion in spending cuts up front and creates a select bicameral committee to find another $1.6 trillion in savings later in the 112th Congress.
The tentative deal hangs on so-called triggers intended to give lawmakers strong incentive to implement the second round of deficit reduction.
A person familiar with the deal said Obama and Senate Republican Leader Mitch McConnell (Ky.) agreed that if the select committee deadlocked or Congress failed to pass its recommendations, it would automatically trigger $1.2 trillion in across-the-board spending cuts.
The president and McConnell agreed to divide the automatic spending cuts evenly between defense and nondefense programs, according to the source. Obama also persuaded GOP leaders to set up firewalls to ensure a significant amount of the spending cuts would take place in fiscal years 2012 and 2013.
Listening tonight to Senator Lindsey Graham (D,SC) cuts from defense and discretionary budget are spilt evenly 50/50 and that concerns him and with good reason. Defense is supposed to be priority number one for our government … well unless you live in lefty land. Joe Lieberman not happy about that either.
Sen. Joe Lieberman (Conn.), another Independent in the Democratic caucus, balked at the prospect of steep defense cuts if the special committee set up by the deal deadlocks over future recommendations to reduce the deficit.
Lieberman’s spokesman, Marshall Wittmann, said his boss “strongly believes that protecting the security of the American people is the first responsibility of American government, and that means that any cuts to defense must be fair, limited, and mindful of the fact that we live in a very dangerous world.”
“For these reasons, Senator Lieberman is very concerned about rumors that the debt agreement now being negotiated will disproportionately cut defense spending and result in unacceptably high risk to our national security,” Wittmann added.
If you want to see the power point Republican legislators are getting tonight, here it is. Caution, as Sen Jeff Sessions point out … these thing have a habit of being inaccurate later.