FiveThirtyEight–on the Debt Debate, It’s All Over but the Face-Saving?

Both bills cut discretionary spending by about the same amount, roughly $1.2 trillion depending on which benchmark is used. Both set up a bipartisan fiscal commission with special powers. Neither raises taxes, or significantly changes entitlement programs.

Mr. Reid’s bill contains a little bit more deficit reduction by cutting agricultural subsidies, selling radio spectrum licenses and improving I.R.S. enforcement. Its savings are also somewhat more front-loaded, with deficit reduction of $30 billion in 2012 as compared with $1 billion for Mr. Boehner’s, although the speaker’s bill is being rewritten.

Most of the difference in their price tags, however, has to do with the fact that Mr. Reid’s bill would count $1 trillion from the winding down of the wars in Afghanistan and Iraq as deficit savings, while Mr. Boehner’s would not ”” a matter of accounting rather than a substantive difference.

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Posted in * Economics, Politics, Budget, Economy, House of Representatives, Medicare, Office of the President, Politics in General, President Barack Obama, Senate, Social Security, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The National Deficit, The U.S. Government

2 comments on “FiveThirtyEight–on the Debt Debate, It’s All Over but the Face-Saving?

  1. Br. Michael says:

    No cause for rejoicing. The spending will continue, the borrowing will continue, the debt will continue to rise and the can is once more kicked down the road.

    Oh and we will have another committee that will report and be ignored.

  2. Jill Woodliff says:

    Prayers may be found [url=http://anglicanprayer.wordpress.com/2011/07/27/debt-ceiling-crisis/]here[/url], [url=http://anglicanprayer.wordpress.com/2011/07/15/us-debt/]here[/url], and [url=http://anglicanprayer.wordpress.com/2011/07/25/round-up-of-prayers-for-the-economy/]here[/url].