Saturday, July 30, 2011
ABC News is reporting Republicans and the White House have reached a tentative deal to raise the debt ceiling. That’s the good news.
The bad news is, Medicare will be subject to automatic cuts if the deal is approved.
Key features of the agreement include:
- A debt ceiling increase of up to $2.1 to $2.4 trillion
- They have now agreed to spending cuts of roughly $1.2 trillion over 10 years.
- The formation of a committee to recommend further deficit steps
- The special committee must make recommendations by late November
- If Congress does not approve those cuts by December 23, automatic across-the-board cuts go into effect, including cuts to Defense and Medicare. This “trigger” is designed to force action on the deficit reduction committee’s recommendations by making the alternative painful to both Democrats and Republicans.
- A vote, in both the House and Senate, on a balanced budget amendment.