Pelosi Outlines Revenue-Free Path Forward On Debt Limit Fight

[jefferson_dem]

Pelosi Outlines Revenue-Free Path Forward On Debt Limit Fight

House Minority Leader Nancy Pelosi acknowledged Friday that Democrats may reluctantly accept a last-minute compromise to raise the debt limit that involves up to $2.5 trillion in spending cuts, without any agreed-upon plan for new tax revenues.

The plan would place a firewall between entitlement spending and the threat of default, upsetting GOP plans to force deep cuts to those programs. And if, as a result, the GOP declined the offer, Democrats would agree to punt the questions of entitlement spending and tax cuts to a future, streamlined legislative process.

The potential endgame, Pelosi said, would meet an arbitrary GOP requirement that Congress must only grant President Obama as much new borrowing authority as he's willing to accept in spending cuts, and leave for a later date a twinned fight over revenues and social insurance programs.

"We're willing to bite the bullet and make serious cuts in discretionary spending," Pelosi told a small group of reporters and bloggers. "That could go to a trillion dollars or more. And the interest saved on that can take us to like a trillion and a half dollars saved."

We could go even further with non-health mandatories, could take us almost to two trillion. We could use the offshore -- the Overseas Contingency -- could take us to two-and-a-half trillion dollars. Which is the dollar-for-dollar for the lifting the debt ceiling. I don't think we have to have dollar-for-dollar, but for those who think they do, there's a path to get there.

<SNIP>

http://tpmdc.talkingpointsmemo.com/2011/07/pelosi-outlines-revenue-free-path-forward-on-debt-limit-fight.php

[Autumn]

1. In which case, I really think

it's all over.

[Sheepshank]

8. Discretionary spending was always open...no? Where esle would cuts have come from?

Wasn't there always discussion of some cuts? Descretionary spending is separate and different from entitlements...on every graph and document I have read, they are not tied together. It appears she has protected SS and medicare as a point for consideration.

[Eric J in MN]

2. Given a choice between

A) Promising to cut Social Security and Medicare
B) Promising to cut nothing specific

...I prefer B, and apparently Nancy Pelosi does, too.

[tularetom]

3. The 800 lb gorilla in the room is the bush tax cuts

They will expire in 2012 and provide any revenue needed to make SS/Medicare cuts unnecessary.

That is if Obama doesn't trade them away again like he did to get the unemployment extension.

[MichiganVote]

7. They will never allow those welfare to the rich tax breaks to expire. You're dreaming.

[ladjf]

9. Our troops in Iraq and Afghanistan are a couple more gorillas

in the room. nt

[gateley]

12. I think (don't know if I'm right), take away the corporate loopholes

so the behemoths are paying SOME tax revenue :eyes:, let the Bush tax cuts expire, shave off a big chunk of what we're doing in the wars, and problem solved.

Am I being too simplistic?

[ladjf]

14. All good suggestions. nt

[sad sally]

15. A nice thought, but what are the odds they'll actually expire?

Flipping thru the tv channels this p.m. to see what FOX heads were saying, heard them say the plan is to accept Reid's cuts of $2.2 billion with (my words, fingers crossed) promises of possible revenue increases in Jan. 2013. Just imagine if the anger over this screwing produces a Republican president. The Bush/Obama tax cuts would become permanent. Well, even if Obama is re-elected, they still may become permanent...

[ProSense]

4. Why is she caving?

<...>

That's not a great deal for Democrats, she noted, but it protects key programs like Social Security, Medicare, and Medicaid. "(T)hat's a non-revenue path. I don't like it at all but it doesn't go near our entitlements," Pelosi said.

There's one big problem: "I don't think the Republicans are going to accept that. So whatever they would want to accept over-and-above that would have to be something, I think, down the road. And that would be treating entitlements and revenue."

<...>

Even the reporting from a conference call with bloggers sucks!

[gateley]

10. "...but it doesn't go near our entitlements." That's key --

there MAY be some areas of SS/Medicare/Medicaid which can be shaved, but we don't know that for sure, but it's key that it doesn't affect those receiving benefits -- not one cent!

[n2doc]

5. Repubs won't go for it

Now, if Pelosi can hijack a few moderate Repubs (say 40-50) (If such actually exist) it would be great fun to see her go around Boner and get something passed.

That said, it just isn't going to happen. Boner has too much power as speaker, and the TP'ers are too nutz.

[thereismore]

6. If you cut military spending to the level of debt increase, I'm OK with that. nt

[gateley]

11. The problem always comes back to the Republicans -- we need

their votes.

This morning again, Obama said he was willing to cut some Pentagon budget. HE is, THEY probably aren't.

[styersc]

13. We deserve to lose every election for years to come.

The parties are now the GOP and the other GOP.

I guess I don't mean "we" because I'm no longer a participant. No money, no volunteering, nothing!!!!!

[golfguru]

16. Just end the 4 wars and then no cuts are needed

I can't think of anything more stupid than fighting wars in middle-east with borrowed money from China to protect oil supplies to China which has taken away millions of manufacturing jobs from USA. May be Donald Trump is right, we are getting screwed by many foreign countries including China & OPEC & many others.

[boxman15]

17. I'll take that.

They don't get their entitlement cuts, we don't get our revenue increases. It's a smaller deal, but at this point, I'll take that over nothing. Default would be incredibly disastrous.

Now, if there are entitlement cuts with no revenue, I'll be upset. But, if revenues are off the table, so are SS and Medicare, it looks like. I'll take that for now. It's somewhat disappointing, but the Bush tax cuts will expire in 2012, and if President Obama is re-elected, it should be able to stay that way.

*Prepares for onslaught of "OBAMA LOVES BUSH TAX CUTS" people*

[Armstead]

18. So much for any new government initiatives

I love the power these teabaggers supposedly weld.

If only we pathetic progressives could figure out how to get similar leverage.