Debt Ceiling “Compromise” Becomes Law
Matt | On 02, Aug 2011
It’s official. The United States of America, at least for right now, is not going to careen into debt default despair. We made the midnight deadline!
The president signed the legislation to increase the nation’s debt ceiling today, thus ending the ugly spectacle that has become routine with most issues in Washington.
But, trust and believe that the deal that was struck is not a real “deal” at all. Democrats didn’t get the revenue raisers (i.e., tax increases) they wanted. They also had to cave in on a bit of social safety net reform (i.e., Medicare). Tea Party fringe supporters didn’t get the ultimate smackdown on spending they were seeking.
The only people that really “won” were the old guard Republicans – those seeking lower taxes for the rich and the same “IDGAF [take a wild guess what it means] attitude” toward the middle class. These are the same people whose ranks don’t represent anything near the socioeconomic diversity of America.
Politics aside, here is what the debt ceiling deal means in simple(r) terms:
- $2.1 trillion increase in the debt ceiling limit through early 2013
- U.S. Treasury gets an immediate $400 billion in borrowing authority
- A committee will search for another $1.2 trillion to cut from the budget later this year
- No new tax increases on the wealthiest Americans, nor any real revenue raisers to attack the debt problem
- $2.1 trillion would be cut from borrowing over the next 10 years
- $917 billion in agency cuts over the next decade
- Programs for the poor – Medicaid, Social Security, food stamps, etc. – would be somewhat protected from deep cuts.
I still can’t get over Republicans wanting to “reign in spending,” but there is not a single tax increase on the wealthy. The accounting doesn’t make sense. You cannot “cut” your way to a balanced budget. Mama has got to bring some new coins into her house!! ::deep sigh::