Posted on 07/26/2011 3:54:11 PM PDT by RummyChick
CBO: Boehner plan cuts deficits by $850B By Erik Wasson - 07/26/11 06:03 PM ET The Congressional Budget Office has told House Speaker John Boehner (R-Ohio) that his debt ceiling fallback plan will reduce the deficit by about $850 billion over ten years.
House GOP rank-and-file have been waiting eagerly for the score since they are worried the bill would not measure up to claims made about it by House leadership. Leadership on Monday said the bill would reduce discretionary spending by $1.2 trillion over ten years.
The CBO revealed the score in a Tuesday letter to the speaker.
The score is against the latest CBO baseline as adjusted to reflect the 2011 spending cuts deal between Congress and the White House that cut $38 billion in budget authority. Those 2011 cuts have ripple effects over the budget window.
The CBO has also determined that taking that earlier deal into account, the spending levels in the Boehner plan is a $1.1 trillion cut in the deficit.
Most of the effects of the Boehner plan come from caps it imposes on discretionary spending. Next year the cap is $1.043 trillion, a $6 billion drop from current levels.
Actual federal spending outlays in the ten-year period would be reduced by $710 billion relative to that March baseline, CBO says, if the discretionary spending caps in the Boehner plan are instituted.
Overall, savings in discretionary spending is cut $695 billion, mandatory spending is cut by $20 billion, and the savings in interest equals $135 billion.
CBO also looked at other more minor provisions in the Boehner bill. One would provide extra funding for Pell Grants to students and this costs $17 billion, while another would limit other student loans saving over $30 billion.
The Boehner plan is a two-step process whereby the debt ceiling would be raised before Aug. 2 and then again next year.
The CBO score reflects part one of the process, which grants President Obama the right to request a $900 billion increase in the debt ceiling, slightly more than the amount CBO says the Boehner plan cuts from combined deficits compared to the March baseline.
Boehner this spring said Congress would only raise the debt ceiling if spending cuts exceed the amount by which the debt ceiling is raised.
CBO does not assign a score to the second phase of the Boehner plan which would require a joint committee to come up with a plan to cut $1.8 trillion from the deficit by Nov. 23.
You are so right.
The budget can't be done in one bite without cutting entitlements. In order to fix the problem without hurting people the growth rate has to be changed. If we try to do it all at once a lot of people get hurt and run back to the Rats that stand there with open arms. The idea behind the "super congress" was to give cover to the big fix.
This is why I'm eager to move on toward the Ryan plan which shines a spotlight specifically on entitlements.
The Ryan plan will include more cuts for '12 than are in the current debt debate.
I think that debate is going to push more Americans toward agreeing on deeper cuts which is why Obama is putting it off and trying to extend this debt crisis for as long as he can.
Were not some of us saying this would be the plan? Oh how I hate these pols.
I must be an idiot. This does not seems to be difficult. Funding or appropriations begin in the House. If it is not funded it is a cut in spending. Stop the funding of unnecessary programs would be an idea. Department of Education, Energy, HUD, and countless programs. Stop duplication. It looks simple. I must be an idiot.
Just back up for one second and look at the forest and not just one tree.
You're right we need to cut everything we can, but about 60% is entitlements, 19% is defense and 9% is interest on the debt. Out of the remaining 14% how do you balance the budget?
Cut,Cap&Balance addresses that and was already passed by the House.
But it’s a BS argument anyway. After you cut all the non-defense discretionary spending to the bone THEN you can tell us it will take awhile longer to cut the rest.
That’s not what Boehner is offering.
It’s even worse than that. If you look at the #s for just next year, FY2012, the total cut in discretionary spending is 5B. That’s it. 5B in cuts in dsicretionary spending for next year. All the rest doesn’t matter. But it also increases spending on pell grants and some other things so the total impact on the deficit for next year is a cut of 1B. Who cares what happens in 2015 or 2017? Next year this bill would cut 5B in spending and lower the deficit by 1B.
Fortunately it appears to be dead.
The GOP has the upper hand here. Even the media has started to report that there won’t be any default, that Obama and Geithner have been misleading people about that and there will be plenty of money to cover the debt payments.
The GOP just needs to hold out and they can get a very good deal.
I just despise this kind of BS
FiestaBuckeye Tim Adams
Boehner spokesman Michael Steel:”We’re here to change DC-no more smoke &mirrors,no more ‘phantom cuts’ foxnews.com/politics/2011/… Integrity matters
now
It's not enough for us to be fiscal conservatives we have to show the American people that we can return America to fiscal sanity without hurting too many people. Sen. DeMint was suggesting returning to the 2008 baseline which would balance the budget in 10 years. He understands it can't be done all at once.
I love cut, cap, & balance but we can't get it past Reid.
The solution to the problem will occur in November 2012 when the Republicans have a chance at the Presidency and both arms of congress.
____________________________________________________________
My God how dumb do these people think we are?
Replace 2012 with 2000 in the above quote and tell me how that worked out for you.
Don’t bother with the whole “but,but 911 and Iraq” unless you can guarantee there will be no more wars.
The numbers are what they are.
After you cut all the non-defense discretionary spending to the bone THEN you can tell us it will take awhile longer to cut the rest.
Everyone talks tough until they start to feel the pain as well, then the argument changes to "I wouldn't have agreed to this if I knew it would cause so much trouble".
Cut,Cap&Balance addresses that and was already passed by the House.
I love it! How do you get it past Reid?
This all seems like political posturing for the next election and nothing more.
Here’s a plan Rand Paul came up with that cuts 500B next year without touching entitlements. It includes close to 50B in defense cuts. That’s 500,000,000,000 next year alone.
I’m as hawkish as they come but I’d be ok with certain defense cuts depending on what they are. I don’t think anyone would say we’ve been very effecient at the Pentagon in recent years. I’m sure we could find plenty of savings there without downgrading our capabilities.
Now, I don’t know if I agree with all of it. But surely based on this plan the Boehner could come up with something that’s much more than the 5B cuts in discretionary spending he laid out today.
Even if you use Paul’s 500B as a start and then end up with say 150B in cuts next year that would be a huge improvement.
I think the GOP should use this as their guide and try to come up with at least 100B in cuts next year to start with.
It’s a BS argument because you are not saying “we’ve cut everything we can except entitlements, we need more time for that.”
That would be reasonable.
No what you’re saying is we can’t cut entitlements yet so let’s not cut anything. That’s BS
I don’t give a rat’s ass if the takers freak out when we cut off the gravy. This is what the Tea Party is all about.
If Reid’s only choice is CCB or “default” we get CCB, guaranteed.
BTW, how come no Republicans have brought up the fact that Obama and the dems could have raised the debt ceiling at any time in 2009 or 2010 when they had both houses and huge majorities. They could have raised it whenever they felt like. But they never did. How come?
Debt ceiling rap
http://www.youtube.com/watch?v=EoS52fVtVQM
Yep. Its Obama Drama, brought to you by the Kabuki Theater and paid for by the All Day Propaganda machine.
Same can be said about Rush Limbaugh.
As much as he’s done for conservatism, that pussy wouldn’t show up at a rally if jack booted thugs were storming his southern command. No, he’s been clear on this point, he’s running to New Zealand.
Fact.
better go post some of your posts from last night on this thread:
http://www.freerepublic.com/focus/f-news/2754328/posts
Thanks that was great! I needed a laugh about now.
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