She said weeks ago that they would raise the debt ceiling, some one was trying to get her to comment on it, they will do what they are going to do. She recognized that what she said would make no difference.
Future comments I am sure will be less muted.
1. Someone will be paying more in taxes.
2. Some Federal agencies and programs will be eliminated.
3. The Debt Limit will have to be raised by some amount.
The fighting is over the details in each of these broad points. Some of the suggestions put forward are good, some not so good.
1. I support eliminating some of the special interest deductions. Corporate Jets, Horses. Do not support others, Oil and gas companies. I also know that the deductions I support eliminating will not bring in that much extra revenue to the Government (I have seen estimates for the Horse deduction of under $1Mill)
2. I am worried in that I have seen no discussion of what programs will be on the chopping block. The Congress needs to understand that if the cuts are not made before the end of this fiscal year and continued through the next I do not consider them to be cuts. Baseline accounting must be eliminated.
3. I like Bohner’s formula. For every dollar of cuts we raise the ceiling by one dollar. However given my restricted definition of cuts, ten times the amount of spending cut from the budget for the rest of the year and not restored in next year's budget would be the amount I would use.