Saturday, July 30, 2011

Reid draws a line

For those who worry that Democrats will agree to an enforcement mechanism in any pending debt ceiling deal that will empower Republicans to cut spending again without any tax increases in the second phase, an important assurance from Harry Reid:

"We have a closet full of triggers, people have suggested dozens of them but even though earlier this week, I was sitting talking to Jack Lew about triggers for an hour and a half and we can't get Republicans to move on any trigger. We're not going to have cuts on more programs without some revenue - that is a line we've drawn in the sand," Reid said.

Next question: in phase 2, will Democrats trade the pending $3.6 trillion tax hike that would result from letting the Bush tax cuts expire at the end of 2012 for some piddling amount of revenue, as Obama was prepared to do in a grand bargain with Boehner?

UPDATE: That didn't take long. Reid has signed off on a deal in which the triggers reportedly do not include new tax hikes. The only deterrent to prevent Republicans from rejecting the deficit reduction plan to be put forward by the Gang of 12, and so triggering automatic cuts, is to make half of those cuts in defense spending. And once again, with near-total victory nigh, Boehner is pushing back, insisting on fewer defense cuts in the trigger. 

Looks like another Dem cave, followed by another GOP balk, to be followed by further Dem concessions...


  1. Great. A month back they were saying the same thing about this go-round. Six months from now they'll say they're certainly going to get new revenues next time. On and on. Who cares? They're lying.

  2. I think it's worthwhile to continually point out that cutting spending inside the tax code is cutting spending, not Raisin Taxes. The super committee had best be focused on cutting spending inside the tax code. Cutting spending inside the tax code is cutting spending. Those nine words ought be tattooed on some of the children.