Staring Into the Budget’s Abyss
NYT editorial
Republicans, looking for leverage to slash federal spending, created the phony debit-ceiling crisis that led to creation of the Congressional deficit-cutting “supercommittee.” But with the committee close to a deadlock — largely because Republicans will not agree to higher taxes on the rich — and the deadline for an agreement approaching, some Republicans are now talking about undoing the process.
We are no fans of the supercommittee. It is undemocratic, and the deep, automatic cuts the law would impose if the committee fails to reach agreement are gimmicky and potentially dangerous. But walking away at this point would be an embarrassment for Congress and a far-reaching blow to Washington’s financial credibility.
The committee of 12, divided between the two parties, was required by the Budget Control Act to come up with a plan to shrink the deficit by at least $1.2 trillion over the next decade through any combination of spending cuts and revenue increases. If the members fail to agree, the law would automatically “sequester” $1.2 trillion in spending cuts — heavily affecting defense programs.
Democrats have proposed a $4 trillion mix of cuts and tax increases, carving too deeply from domestic programs. But Republicans have rejected any tax increases, and Democrats are rightly refusing to agree to any package without revenues.
(More here.)
Republicans, looking for leverage to slash federal spending, created the phony debit-ceiling crisis that led to creation of the Congressional deficit-cutting “supercommittee.” But with the committee close to a deadlock — largely because Republicans will not agree to higher taxes on the rich — and the deadline for an agreement approaching, some Republicans are now talking about undoing the process.
We are no fans of the supercommittee. It is undemocratic, and the deep, automatic cuts the law would impose if the committee fails to reach agreement are gimmicky and potentially dangerous. But walking away at this point would be an embarrassment for Congress and a far-reaching blow to Washington’s financial credibility.
The committee of 12, divided between the two parties, was required by the Budget Control Act to come up with a plan to shrink the deficit by at least $1.2 trillion over the next decade through any combination of spending cuts and revenue increases. If the members fail to agree, the law would automatically “sequester” $1.2 trillion in spending cuts — heavily affecting defense programs.
Democrats have proposed a $4 trillion mix of cuts and tax increases, carving too deeply from domestic programs. But Republicans have rejected any tax increases, and Democrats are rightly refusing to agree to any package without revenues.
(More here.)
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