If boner promises to submit a budget that balances after 10 years, he had better show cuts immediately. Today’s congress cannot impel any legislation on any subsequent congress. Any promise of a future cut is no promise at all.
Guys, slow down.
Two years ago was quite a victory, as it turns out. August 2011 was the when the last debt ceiling deal was done. It DID get 2.2 Trillion to baseline spending cuts, 1 Trillion up front and 1.2 Trillion on the Sequester pending and the total over a period of 10 years.
The 1 Trillion was backloaded to protect the 2012 election so it was only 4 Billion in 2012. But it’s now 2013 and it is going to be another 100+ billion in cuts this year that frankly none of the analysis has included (because it lowered the baseline and most analysis is just comparing to that baseline).
GDP will feel it, though. It will be 100+B off of GDP this year. In addition to the 120B off from the payroll tax increase and another 108B off from the 2013 portion of the Sequester.
There are presently scheduled, in law, to be 2% of GDP (drag) cuts from government stimulus this year.
The upcoming Continuing Resolution debate will increase that drag. No way to know by how much and likely it will again be over 10 years and backloaded, but the Dems know that they will have to have spending cuts in the CR. This is a good approach from the House GOP. The debate will be about the CR, not the debt ceiling. The debt ceiling does not determine spending; only the CR legislation does.