The document outlines a two-step framework to address the debt ceiling and deficit issues:
1) Cut spending more than the debt limit is increased and implement spending caps to control future spending.
2) Create a joint committee to reduce the deficit by at least $1.5 trillion over 10 years through entitlement reforms and require an up-or-down vote on the committee's proposal or passage of a Balanced Budget Amendment.
The document outlines a two-step framework to address the debt ceiling and deficit issues:
1) Cut spending more than the debt limit is increased and implement spending caps to control future spending.
2) Create a joint committee to reduce the deficit by at least $1.5 trillion over 10 years through entitlement reforms and require an up-or-down vote on the committee's proposal or passage of a Balanced Budget Amendment.
The document outlines a two-step framework to address the debt ceiling and deficit issues:
1) Cut spending more than the debt limit is increased and implement spending caps to control future spending.
2) Create a joint committee to reduce the deficit by at least $1.5 trillion over 10 years through entitlement reforms and require an up-or-down vote on the committee's proposal or passage of a Balanced Budget Amendment.
The document outlines a two-step framework to address the debt ceiling and deficit issues:
1) Cut spending more than the debt limit is increased and implement spending caps to control future spending.
2) Create a joint committee to reduce the deficit by at least $1.5 trillion over 10 years through entitlement reforms and require an up-or-down vote on the committee's proposal or passage of a Balanced Budget Amendment.
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TWO-STEP APPROACH TO HOLD PRESIDENT OBAMA ACCOUNTABLE
Emerging framework has three main features: (1)!! cuts government spending more than it increases the debt limit; (2)!! implements spending caps to restrain future spending; (3)!! advances the cause of a Balanced Budget Amendment Framework accomplishes this without tax hikes, which would destroy jobs, while preventing a job-killing national default. SPEAKER JOHN BOEHNER
NO TAX HIKES Same as House-passed bill, the framework includes no tax hikes.
Requires baseline to be current law, effectively
making it impossible for Joint Committee to increase taxes. SPEAKER JOHN BOEHNER
CUTS THAT EXCEED THE DEBT HIKE
Same as House-passed bill, framework includes spending cuts that exceed the amount of the increased debt authority granted to POTUS. 10 years (certied by CBO) & raise the debt ceiling by less $900B to approximately February.! spending cuts of a larger amount rst.
Would cut & cap discretionary spending immediately, saving $917B over Before debt ceiling can be raised, Congress and the president must enact SPEAKER JOHN BOEHNER
CAPS TO CONTROL FUTURE SPENDING
As in House-passed bill, framework imposes spending caps that would set clear limits on future spending & serve as barrier against govt expansion while economy grows.!
Failure to remain below these caps triggers automatic acrossthe-board cuts (sequestration).! Same mechanism used in 1997 Balanced Budget Agreement. SPEAKER JOHN BOEHNER
BALANCED BUDGET AMENDMENT
Same as House-passed bill, framework requires both House & Senate to vote on a BBA after Oct. 1, 2011 but before the end of year. debt limit increase of $1.5T if:
Similar to House-passed bill, framework authorizes POTUS to request second tranche of Joint Committee cuts spending by greater amount than the requested debt limit hike, OR A Balanced Budget Amendment is sent to the states.
Creates incentive for previous opponents of a BBA to now support it.!
SPEAKER JOHN BOEHNER
ENTITLEMENT REFORMS & SAVINGS!
Same as House-passed bill, framework creates a 12-member Joint Committee required to report legislation by November 23, 2011 that would produce a proposal to reduce the decit by at least $1.5T over 10 years. basis without any amendments by December 23, 2011.!
Each chamber would consider Joint Committee proposal on an up-or-down If Joint Committees proposal is enacted OR if a Balanced Budget Amendment is
sent to the states, POTUS would be authorized to request a debt limit increase of $1.5T.! SPEAKER JOHN BOEHNER
ENTITLEMENT REFORMS & SAVINGS!
Sets up a new sequestration process to cut spending across-the-board and ensure that any debt limit increase is met with greater spending cuts IF Joint Committee fails to achieve at least $1.2T in decit reduction.! If this happens, POTUS may request up to $1.2T for a debt limit increase, and if granted, then across-theboard spending cuts would result that would equal the difference between $1.2T and the decit reduction enacted as a result of Joint Committee.! Across-the-board spending cuts would apply to FYs 2013-2021, and apply to both mandatory & discretionary programs.! Total reductions would be equally split between defense and non-defense programs.! Across-the-board cuts would also apply to Medicare.! Other programs, including Social Security, Medicaid, veterans, and civil & military pay, would be exempt. Sequestration process is designed to guarantee that Congress acts on the Joint Committees legislation to cut spending.
