Monday, August 01, 2011

House Passes Obama/Reid/McConnell/Boehner Debt Deal, Giffords Votes, Deal Doesn't Cut Spending

260 for and 173 against.

Rep. Gabrielle Giffords came to DC to vote for the bill.

So much for the promise of having the bill online three days before the vote.  It didn't happen.

The CATO Institute (h/t FreeRepublic) reveals that, contrary to the claims of House Speaker John Boehner, spending is not cut.
House Speaker John Boehner’s bullet points on the deal say that it cuts discretionary spending by $917 billion over 10 years, as “certified by CBO.” These discretionary “cuts” appear to be the same as those in Boehner’s plan from last week. The chart shows CBO’s scoring of those spending cuts

Wait a minute, those bars are rising! Spending isn’t being cut at all. The “cuts” in the deal are only cuts from the CBO “baseline,” which is a Washington construct of ever-rising spending. And even these “cuts” from the baseline include $156 billion of interest savings, which are imaginary because the underlying cuts are imaginary.

No program or agency terminations are identified in the deal. None of the vast armada of federal subsidies are targeted for elimination. Old folks will continue to gorge themselves on inflated benefits paid for by young families and future generations. None of Senator Tom Coburn’s or Senator Rand Paul’s specific cuts were included.

The federal government will still run a deficit of $1 trillion next year. This deal will “cut” the 2012 budget of $3.6 trillion by just $22 billion, or less than 1 percent.

In other words....we got sold a bill of goods!

This is not just a spending crisis, but a crisis called lack of leadership.

Those two eunuchs Boehner and McConnell need to be replaced by leaders.  Instead of bringing economic sanity to Washington, they just handed Obama a big fundraising birthday present for Wednesday night.

No comments: