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Jamie Dupree Washington Insider

Debt Limit Details II

8:39 am July 26, 2011, by Jamie Dupree

An examination of the two proposals on the debt limit shows that while there are certainly differences in the details of the plans offered by Speaker Boehner and Senate Majority Leader Harry Reid, there is some common ground that could help bring about a deal in coming days.

It may sound silly to start with this, but the fact that the two proposals share the same name speaks to the possibilities of an agreement, as both Democrats and Republicans labeled their proposals the "Budget Control Act of 2011."

To me, the most interesting "insider" part of this was that Republicans in the House are attaching their plan to a bill that originated in the Senate - that limits the range of delaying tactics that can be used against the measure, especially by Senators opposed to the plan.

The second "insider" bullet point is that while Sen. Reid unveiled his plan on the Senate floor, he did not file cloture to force action on it - clearly waiting to see whether Republicans can get their bill through the House on Wednesday.   Could that bill then become the focus for the Senate instead of Reid's plan?  It shouldn't be ruled out as a possibility.

While Reid's office on Monday bitterly disputed reports that there had been a bipartisan deal on this legislation over the weekend - and whether it was later presented to President Obama - it is obvious from the legislative drafting of the two plans that there has been a lot of cooperation.

For example, the section dealing with the creation of a "Joint Select Committee on Deficit Reduction" has much of the same language - except for the fiscal goal for that panel.

The Republican plan reads: "The goal of the joint committee shall be to reduce the deficit by $1,800,000,000,000 or more over the period of fiscal years 2012 to 2021."

The Democratic plan reads: "The goal of the joint committee shall be to reduce the deficit to 3 percent or less of GDP."

The Democrats have one extra section that would allow the joint committee to look at "existing bipartisan plans," which could mean the Gang of Six or last year's Fiscal Commission.

After that, almost the entire rest of this section on the joint committee includes identical language in the Boehner and Reid proposals - that didn't happen just by chance - it's obviously the result of recent negotiation.

What about the levels of spending envisioned under these two plans, how different are they in coming years?

Both agree that for Fiscal Year 2013, which is "next year's" budget, the federal government would spend $1.047 trillion.

For Fiscal Year 2014, Democrats are at $1.068 trillion, Republicans at $1.066 trillion - a difference of $2 billion.

For Fiscal Year 2015, Democrats are at $1.089 trillion, Republicans at $1.086 trillion - a difference of $3 billion.

After FY 2015, the differences expand somewhat. For Fiscal Year 2016, Democrats would spend $1.134 trillion, while Republicans would spend $1.107 trillion, a difference of $27 billion.

But when you think about the size of the budget, $27 billion four years from now really isn't that big of a deal.

As for dealing with the debt limit increase, only the House plan includes the plan advanced by Senate GOP Leader Mitch McConnell, which would allow the President to increase the debt limit in a two-step request; the Reid plan simply raises the debt limit to $16.994 trillion.

So, don't get me wrong, the two plans are not the same - but there are a lot of similarities here.

And those similarities could well provide the basis for a deal later this week.

I won't say the "fix is in," but it could be by later in the week.

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15 comments Add your comment

Curtis

July 26th, 2011
8:51 am

This game of chicken has gone on long enough. It’s tiring that the GOP can only say “NO”. They need to end this and do what is right for the country. We need a compromise!

Karne

July 26th, 2011
8:58 am

The party of the Tea Party. Yuk!

thea

July 26th, 2011
9:02 am

Not sure what Curtis and Karne are reading…the republicans are the only ones who have put forth ANY type of plan. Reid only finally came up with something over the weekend because Obama keeps dithering, not wanting to do his job as usual. This President is not a leader….only a campaigner. Stay strong republicans and do what is right for the future of our country…stop the spending!!!

Jerldeen

July 26th, 2011
9:07 am

I hope we can get everyone on board with a FairTax. That would really get those fat cats to paying my bills.

TNT65Irish

July 26th, 2011
9:11 am

Thea, that Kool-Aid must be getting a little stale by now. The President has presented plans since March and has tried to allow the Congress to set the limits, AS THEY ARE SUPPOSED TO DO.
The problem is and has been that raising the debt limit is a “house-keeping” matter that the Repugnicans have hi-jacked for an ideology that taxes only the middle class and poor while helping the corporations and very rich to all they can eat.

Fletch

July 26th, 2011
9:55 am

TNT65Irish – you truly believe that don’t you. The “super rich” are people making 68k+ individually and 208k+ jointly… The people “not paying their fair share” are responsible for 87% of all revenue in Washington. Good thing you managed to get some name calling in there to lend credibility to your stance. Do you really think every conservative politician is serving an elite few people, .5% of the country? Wow…

David

July 26th, 2011
9:55 am

It’s time.
It’s time to work together.
It’s time to either get the job done or move out of the way!
The American people deserve a functional government.
To this debt limit mess:
Cut expenditures 2 to 4 trillion.
Increase debt limit at least 3.5 to 4 trillion—allows much more time to work on permanent fixes, i.e., balanced budget. *A short term 6 month debt limit will do more harm than good. **any debt limit increase must be large enough to last while Congress works on a long term fix.
Initiate a national sales tax of 3 to 6 percent to go only towards our national debt.– It would increase the tax base. It would collect taxes from everyone in the country, including illegal aliens. It would even tax money made illegally. Now, the government sees none of that money. But when a person buys something with ill-gotten gains, they must pay the tax.

ALOTOFIGNORANTPEOPLE

July 26th, 2011
10:06 am

Please do research before commenting because it makes you sound very ignorant. The republicans passed a bill that the senate(democrats) voted down. Who is the party of no now?

WAW

July 26th, 2011
10:11 am

Fletch: They signed the pledge. Do you really think every conservative politician is serving anyone other than their handlers? See if you can find a copy of Vance Packard’s “The Hidden Persuaders”. In the 50’s psychologist discovered that “people’s memories were “significantly better” in recalling material that harmonized with their own political view point”. The beginning of the talk sheet providing politicians with “frame of reference” for voters. Do you not think the old saying, “You take my money – you do my work” doesn’t apply anymore?

Kennesaw Dave

July 26th, 2011
10:14 am

TNT, That is such a load of crap and you damn well know it. Both the senate and the house have proposed plans and reached some common ground as far as what both parties can agree on. Jamie even said that in his article but you conveniently left that out so you could take a shot at the Republicans. What this all boils down to is Obama keeps pushing for a bill that includes “revenue.” Which in translation means tax increases. You don’t increase taxes during an unstable economy unless you just want to make things worse not to mention the unemployment rate will go up much higher because companies are going to lay off even more people to abosorb the cost of the tax increases. And in case you didn’t notice, the rich and corporations you so loath are a big contributor to job growth in this country. So stop with the rich bashing. People who are rich or run corporations aren’t just handed a pile of money and have a magic wand waived over the head that gives them the know how to run a corporation. But hey, you keep on drinking your own Kool Aid. I’m sure Obama will be glad to pay all your bills and take care of you when it’s all said and done.

ALOTOFIGNORANTPEOPLE

July 26th, 2011
10:15 am

WAW: Why would the conservatives only pander to the rich when they would never get elected because it is such a small base? People need to realize that the conservatives are the only ones with any sort of sense. How did the stimulus spending to keep us under 8% unemployment work out? I sure wish we would have cut taxes instead, of course, that wouldn’t help anyone but the wealthy lol.

Johns creek resident

July 26th, 2011
10:24 am

Do both the senate and house plans rely on “accounting” cuts to inflated war cost projections to “reduce” spending?

Rafe Hollister

July 26th, 2011
10:41 am

As we learn more and more, it seems that a deal could have been completed long ago, if Obama had not been involved. He selfishly wants to get a debt increase that will last through the next election, so that the voters are not constantly reminded of his spending addiction. He is putting his selfish ambition ahead of the welfare of the US.

I thought Clinton was the worlds greatest living narcissist, but then Barry showed up.

WAW

July 26th, 2011
10:42 am

ALOT: I was responding the Fletch’s “every conservative” remarks. It doesn’t make any difference which party, or position, or wing, or whatever; The point is that people (voters) support politicians that they THINK represent THEIR positions. The fact is that politicians do what they are told by their patrons. Madison Ave (where advertising agencies congregate like Wall Street is to financial firms) controls what’s the spin will be. If it weren’t for the independent (not R or D) voters causing the sway left or right but always near center, this country would have never made it to begin with let alone continue in the future.

Lisa

July 26th, 2011
11:51 am

All you rich people take your coporations, jobs, and money and go to another country! I’ll get a job from a poor person! They create jobs, right. You don’t want to pay more taxes, while my government gives away money we don’t have, take your ,money and run!! Let’s see how the government runs on the money of from the UNRICH!! Move over 3rd world countries! Here comes the FUNDAMENTALLY CHANGED AMERICA!