POSTED: Monday, August 1, 2011 - 4:56pm
UPDATED: Monday, August 1, 2011 - 5:57pm
There is an agreement now on raising the debt ceiling, and both sides are trying to sell it to their members of Congress.
So, what’s in it and how do Republicans and Democrats feel about it.
They worked into the wee hours of the morning and produced a deal.
But it’s a deal that cuts far less from the budget than many others, and may be a tough sell on both sides.
Even though Harry Reid, Mitch McConnell, John Boehner and President Obama say it is a bill they can live with, others are disappointed, to put it charitably.
First, there are no tax increases.
The bill does raise the debt ceiling, up to 2.4-trillion dollars with the next hike after the 2012 elections.
There are caps on the budget in future years.
It cuts a trillion dollars from the budget, over 10 years, and establishes a super committee, which some are calling the super congress.
There, 6 Republicans and 6 Democrats will hammer out an additional 1.5-btrillion dollars in cuts. If they don’t reach agreement, an automatic trigger would make the cuts across the board among discretionary programs.
With a deficit this year of 1.5-trillion that only goes down to 700-billion on its own by 2013, many feel the cuts are too timid.
“We were told there’s going to be cuts beginning in 2013 and they’ll go for over 10 years,” says Congressman Louie Gohmert. “We all know that in the out years…anything beyond 3 or 4 years is not likely to happen.”
Congressman Jeb Hensarling says it’s a start. “The numbers relative to the problem, are minimal,” he says. “The directional change is huge. “