(The Hill) Sen. Reid signs off on bipartisan debt-ceiling compromise

Sources familiar with the outlines of the deal say it would raise the debt limit by about $2.7 trillion and reduce the deficit by the same amount in two steps. It would cut about $1 trillion in spending up front and set up a select bicameral committee to put together a future deficit-reduction package worth $1.7 trillion to $1.8 trillion.

Failure of Congress to pass the future deficit-reduction package would automatically trigger cuts to defense spending and Medicare. An aide familiar with the deal said the Medicare cut would not affect beneficiaries. Instead, healthcare providers and insurance companies would see lower payments.

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Posted in * Economics, Politics, Budget, Economy, House of Representatives, Office of the President, Politics in General, President Barack Obama, Senate, The National Deficit, The U.S. Government

5 comments on “(The Hill) Sen. Reid signs off on bipartisan debt-ceiling compromise

  1. Dan Crawford says:

    Ah yes, the Medicare cut will not affect beneficiaries. Wait till they see the price increase on their Medicare Advantage programs. I despise politicians, especially when they assume the unwashed masses believe every lie they tell.

  2. Teatime2 says:

    No doubt a lot of these cuts will remain hidden. And since we have very little independent, investigative journalism left in this country, there will be some very unhappy surprises in the coming months.

  3. libraryjim says:

    Nancy Pelosi says she wants to read the bill before agreeing to it. Since when did that become a requirement for her? Remember her infamous comment on the Health Care bill: “We have to pass it so we can find out what’s in it”. And what was in it included a $500 billion cut in Medicaid!

  4. David Keller says:

    #1 and #2–In this whole “debate” no one has mentioned that Obamacare will gut Medicare as note by #3. That’s what the Democrats have in store, so you are correct in not trusting them. We must first repeal Obamacre and then have fundamental change in the whole Medicare/Medicaid system.

  5. Sarah says:

    RE: “. . . the Medicare cut would not affect beneficiaries. Instead, healthcare providers and insurance companies would see lower payments.”

    You have to laugh at the clueless naivete of that.