Reid budget plan would save more $$$ than Boehner, CBO finds

From the truth is stranger than fiction department:

“Senate proposal to lift the legal limit on the national debt would slice $2.2 trillion from the federal deficit over the next decade, short of its $2.7 trillion target but far more than a rival debt-ceiling package drafted by House Speaker John A. Boehner, congressional budget analysts said Wednesday,” the Washington Post is reporting.

“The estimate by the nonpartisan Congressional Budget Office found the measure drafted by Senate Majority Leader Harry M. Reid (D-Nev.) would cut about $840 billion from agency budgets through 2021, roughly the same as the proposal by Boehner (R-Ohio). But Reid also claims significant savings from winding down the wars in Iraq and Afghanistan. The CBO found that those savings account for more than $1.1 trillion, making up more than half of Reid’s debt-reduction package.

“The new CBO report comes barely 12 hours after a similar report led House leaders to scuttle a Wednesday vote on their measure and sent them scrambling to find more savings or to reduce the $900 billion debt-limit increase included in the House bill. Boehner has demanded that spending cuts exceed any increase in the debt limit. Senate leaders, too, were expected to make adjustments to meet the dollar-for-dollar target.

“While the Senate package would reduce spending more overall, by the CBO’s accounting, it would also cut more deeply next year. The House bill would reduce next year’s budget deficit by only about $5 billion, the CBO said, while the Senate bill would trim $30 billion from a one-year deficit expected to approach $1.1 trillion.

“The CBO’s analysis Tuesday dealt Boehner’s measure a potentially devastating setback. It said spending cuts included in the House bill would save only about $850 billion over the next decade — far less than the $1.2 trillion advertised.”

The rest of the article is here.

Author: jeffpelline

Jeff Pelline is a veteran editor and award-winning journalist - in print and online. He is publisher of Sierra FoodWineArt magazine and its website SierraCulture.com. Jeff covered business and technology for The San Francisco Chronicle for 12 years, and he was a founding editor and Editor of CNET News for eight years, among other positions. Jeff has a bachelor's degree from UC Berkeley and a master's from Northwestern University. His hobbies include sailing, swimming, and trout fishing in the Sierra.

9 thoughts on “Reid budget plan would save more $$$ than Boehner, CBO finds”

  1. The Tea Party might have been intended by Bin Laden or in the least must be a celebrated new development in his plan to bankrupt the USA.

  2. The republican plans all have one thing in common-cut taxes for millionaires and billionaires, period. That is their constituency and that is who the are openly representing. Cut programs that help average and low income family/ individuals while removing regulations and taxes on big business/ wealthy.

  3. You mean the Republican plan has numbers that don’t add up? Go Figure!

    We all know, according to “Dick-I-will-shoot-you-in-the-face Cheney” that “deficits don’t really matter, Ronnie proved that.”

    This entire Tea Party induced “Hold-The-Country- Hostage” fiasco, is what the country is supposed to be protected from, Tyranny by the Few. Some kinda thing for those who spout off all about protecting the constitution.

    The USA does not need a cap in the first place. Heard on the radio that the USA is one of two countries in the entire world that has one. We would do better by not re-electing representatives that do not represent the citizens. We have seen play out the last few weeks the problem with having a cap in the first place.

    The cap will go the way of “The Gold Rush” the first time we get into another war, and we will.

    1. Sean Hannity’s vocal register is up an octave. I dearly hope, in his fury, that he can tell the difference between Juan Williams in front of him and our black president. Juan’s lookin a tad nervous…sheesh Juan and you thought NPR sucked…Kate

    1. This is Classic Greg!
      Bruce Bartlett on the question is there any way to solve the debt ceiling: ” Not going to pass in the Senate because the Republican caucus is either stupid, crazy, ignorant, or craven cowards that are desparately affraid of the tea party people.”…Ha Ha well said. Not that we didn’t know that already! Send a copy of that over to “the dragons breath ” and let them chew on that for a while.

  4. Jon Stewart has a riff on how all of the GOP see themselves as victim in “GOP: Special Victims Unit”….that man and his writers just kill it…Kate

  5. Here’s more evidence of the extent to which Obama is in the thrall of the financial sector: an article in FireDogLake showing the strong and questionable influence of Standard and Poor’s in conflating the debt limit debate with the deficit debate:

    “Is Standard and Poor’s Manipulating US Debt Rating to Escape Liability for the Mortgage Crisis?”
    http://firedoglake.com/2011/07/29/is-standard-and-poors-manipulating-us-debt-rating-to-escape-liability-for-the-mortgage-crisis/

    Excerpt:

    “In October 2010 S&P issued its first threat to downgrade US debt: “If the U.S. government maintains its current policies for the next 40 years in the face of rising health care and pension spending pressure, it is unlikely that Standard & Poor’s Ratings Services would maintain its ‘AAA’ rating on the U.S.” The report paints a target on the back of Social Security and Medicare, says nothing about the wars, the Bush tax cuts, private health care costs or the absurdity of 40 year projections.

    Ratings agencies are supposed to be reactive and analyze only what they see. They are not supposed to explicitly or implicitly give ”assurance or guarantee of a particular rating prior to a rating assessment.” By prescribing not only an austerity package for the United States, but stating that “in the long term, the U.S. AAA rating relies on reforms” of Social Security and Medicare, they most assuredly broke that rule.

    S&P put forth no legitimate basis for their downgrade threat. As every reputable economist keeps reminding us (James K. Galbraith, Joe Stiglitz, FT’s Martin Wolf, Peter Radford, Bruce Bartlett, Krugman), the US is not Greece and does not face its risk of default. Unlike Greece, the US has its own currency, and unlike Greece, its debt is denominated and would be paid in its own currency. It can create that currency at will. So the only way the US can be forced into default is if Congress and the President do something that would be insane, like refuse to raise the debt limit, and the President then refuse to use the Executive authority of the Constitution to prevent a default.

    But S&P was clearly determined to set itself up as arbiter of the US debt ceiling debate. They said nothing in December when the Bush tax cuts were extended, which dramatically exacerbated the deficit problem they warned of in October. But on February 14 President Obama releases his budget, which cut the deficit by $1.1 trillion over 10 years. The Standard and Poors committee found Obama proposal “disappointing.”

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