Later on today an announcement is expected in this last minute 11th hour deal. The deal is close to the same one which was rejected by President Obama previously; the deal was negotiated by House Speaker John Boehner and Senate Majority Leader Harry Reid.
The Atlantic reports:
Among the newest wrinkles, according to informed sources, is an agreement to extend the current $14.3 trillion debt ceiling very briefly to give the legislative process time to work without resorting to emergency, hurry-up measures.
Other component parts of the tentative deal include:
- $2.8 trillion in deficit reduction with $1 trillion locked in through discretionary spending caps over 10 years and the remainder determined by a so-called “Super Committee.”
- The Super Committee must report precise deficit-reduction proposals by Thanksgiving.
- The Super Committee would have to propose $1.8 trillion in spending cuts to achieve that amount of deficit reduction over 10 years.
- If the Super Committee fails, Congress must send a balanced-budget amendment to the states for ratification. If that doesn’t happen, across-the-board spending cuts would go into effect and could touch Medicare and defense spending.
- No net new tax revenue would be part of the special committee’s deliberations.
The most controversial issue between Tea Partiers/Republicans and Democrats has been raising taxes on the wealthy, which is now called revenue, for political posturing purposes — Tea Partiers claim it’s off the table since they oppose any taxation. Dems have been vocal stating that if there’s an apocalyptic economy and a call for shared sacrifice, then we should all sacrifice.
So, it’s almost settled and only the middle class will sacrifice.
Many thanks to The Atlantic