Details on the deal here
THE PRESIDENT: Good evening. There are still some very important votes to be taken by members of Congress, but I want to announce that the leaders of both parties, in both chambers, have reached an agreement that will reduce the deficit and avoid default — a default that would have had a devastating effect on our economy.
The first part of this agreement will cut about $1 trillion in spending over the next 10 years — cuts that both parties had agreed to early on in this process. The result would be the lowest level of annual domestic spending since Dwight Eisenhower was President — but at a level that still allows us to make job-creating investments in things like education and research. We also made sure that these cuts wouldn’t happen so abruptly that they’d be a drag on a fragile economy.
Now, I’ve said from the beginning that the ultimate solution to our deficit problem must be balanced. Despite what some Republicans have argued, I believe that we have to ask the wealthiest Americans and biggest corporations to pay their fair share by giving up tax breaks and special deductions. Despite what some in my own party have argued, I believe that we need to make some modest adjustments to programs like Medicare to ensure that they’re still around for future generations.
That’s why the second part of this agreement is so important. It establishes a bipartisan committee of Congress to report back by November with a proposal to further reduce the deficit, which will then be put before the entire Congress for an up or down vote. In this stage, everything will be on the table. To hold us all accountable for making these reforms, tough cuts that both parties would find objectionable would automatically go into effect if we don’t act. And over the next few months, I’ll continue to make a detailed case to these lawmakers about why I believe a balanced approach is necessary to finish the job.
Now, is this the deal I would have preferred? No. I believe that we could have made the tough choices required — on entitlement reform and tax reform — right now, rather than through a special congressional committee process. But this compromise does make a serious down payment on the deficit reduction we need, and gives each party a strong incentive to get a balanced plan done before the end of the year.
Most importantly, it will allow us to avoid default and end the crisis that Washington imposed on the rest of America. It ensures also that we will not face this same kind of crisis again in six months, or eight months, or 12 months. And it will begin to lift the cloud of debt and the cloud of uncertainty that hangs over our economy.
Now, this process has been messy; it’s taken far too long. I’ve been concerned about the impact that it has had on business confidence and consumer confidence and the economy as a whole over the last month. Nevertheless, ultimately, the leaders of both parties have found their way toward compromise. And I want to thank them for that.
Most of all, I want to thank the American people. It’s been your voices — your letters, your emails, your tweets, your phone calls — that have compelled Washington to act in the final days. And the American people’s voice is a very, very powerful thing.
We’re not done yet. I want to urge members of both parties to do the right thing and support this deal with your votes over the next few days. It will allow us to avoid default. It will allow us to pay our bills. It will allow us to start reducing our deficit in a responsible way. And it will allow us to turn to the very important business of doing everything we can to create jobs, boost wages, and grow this economy faster than it’s currently growing.
That’s what the American people sent us here to do, and that’s what we should be devoting all of our time to accomplishing in the months ahead.
Thank you very much, everybody.
President Obama smiles briefly while approaching the podium to speak in the briefing room at the White House about the debt negotiations, July 31
Steve Benen: …. It’s done. It’s a deal. That doesn’t mean passage is a sure thing — nothing in this process is ever a sure thing — but the relevant players are on board.
… The Speaker clearly doesn’t love the plan, but in a hilarious twist, Boehner said failing to pass it would lead to a “job-killing default.” That would be the same default Boehner has been willing to pursue for the last several months.
The odds of passage in the Senate are much higher, though it’s unclear when that vote might occur and/or whether the Senate will wait for the House to act. The House remains a tougher lift, where a left-right coalition will make getting a majority very challenging.
…. To clarify something important, Boehner’s presentation gives the impression that new revenue is impossible under the bipartisan congressional commission. That’s false; new revenue is possible and will be a key goal of Democratic members. Whether the revenue is likely or not is a separate question, but for those who saw that and were concerned, Boehner’s claim is just factually wrong.
Full post here
Greg Sargent (Washington Post): So the final deal has been announced, pending approval by the House, and one of the key new pieces of the compromise is that the Congressional committee tasked with coming up with a second round of spending cuts in exchange for the later debt ceiling hike would be forced to act by the new “trigger.” In the event that the committee deadlocks, that trigger would force an even division of non-defense and defense cuts, and since the latter is anathema to Republicans, they would not have any incentive to deliberately sabotage the committee in order to force the deep entitlements cuts they want.
The White House’s argument is that even if the deal is far short of what liberals hoped for, Republicans have effectively surrendered the amount of leverage they were expected to have over entitlements cuts. Now that the committee — which is half Republicans and Dems — will all but certainly advance a package of cuts in exchange for the later debt ceiling hike, the argument is that Dems can live to fight it out another day on entitlements.
The White House is also arguing that the deal sets the stage for a relitigation of the tax cut fight, and it’s now distributing talking points to outside allies that are heavily devoted to making that case on entitlement and taxes, an argument that seems designed to quiet angst and criticism among liberals….
Full post here
A Word From Tally….
Nothing is agreed to until EVERYTHING is agreed to. The VOTE IS TOMORROW, so allowing your hair to be set on fire by the MSM, PL, & EmoProgs is POINTLESS.
While President Obama’s statement seems very reasonable, including TAXING THE F**KING RICH, I still believe there will be a CLEAN BILL, and that is what the goal is.
There is no time to write detail into any “agreement” they have floating around either house right now, much less read it, pass it around, and vote on it.
Much more importantly – the GOPTeaHadists will NEVER agree to a SuperCrongress, or any tax hike. NOT. F**KING. EVER.
A CLEAN BILL is an EPIC WIN no matter what the hysterical Pundit-Idocracy™ says.
1. NO CUTS. Cuts of any kind would be deadly in this economy. F**k, we need to give money to the FAA at this point.
2. No more holding the country hostage. This will be put to bed until 2013.
3. By doing nothing….. the BUSH TAX CUTS EXPIRE.
4. Obama can introduce an EPIC Infrastructure/Jobs bill that he can beat the GOP with from now until election day.
5. The GOP/TeaHadists have shown the world:
- just how much they hate America, their Government, their fellow countrymen, science, intelligence, math, and everything the Koch Bros tell them to.
- how insane they are.
- how willfully ignorant they are.
- how full of poison they are.
- how they are finishing the work of Bin Laden.
The Dems & POTUS are ALL well aware of this list. Everything that is happening now is theatre to allow the few adults who are left in the GOP to look respectable, and marginalize the Crazies®. So before you go jumping any Dem’s shit who votes the way you don’t like tomorrow – or think they should, or says something you don’t agree with – keep the above in mind. THAT IS THE PLAN.
And remember: Nothing is agreed to until EVERYTHING is agreed to.
At this point you and the President have done everything you possibly can given the Radical Republicans extortion tactics.
Please realize that millions of Americans are grateful.
Now, however, is the time to place the glaring light of accountability on the Radical Republicans.
Please request that the members of your respective Senate and House Democratic Caucus hold their vote until every Republican is on record with their vote. If the majority of Republicans in the Senate and House, respectively, do not support the legislation then please urge every member of your respective Caucus to vote NO.
If the Radical Republicans are not willing to overwhelmingly support the legislation they extorted then NO Democratic member of the House or Senate should support that legislation.
President Obama, duty sworn to protect and serve the Constitution, can act decisively through the Section 4 of the 14th Amendment and, even more importantly by his enforcing 31 USC 3103, to avoid default and protect the credibility of the USA.
But, under no circumstance, should the extortionists be allowed to prevail. If they are unwilling to overwhelmingly support the legislation their irresponsible actions forced to a vote, then no one should provide them any support.
Yes.We.Can. … DO.More.Together!
Thanks Bob and Tally
Craig Crawford: Why Obama Won Debt Deal – The President got what he most wanted, postponing another debt ceiling fight until after the election and without politically damaging entitlement cuts.
Everything else is eye wash. Most of the spending cuts are in the out years, which is another way of saying it won’t happen.
And one more committee to study cuts? Oh please, even if they call it a “super” committee that’s always a Capitol Hill euphemism for doing nothing. Adding so-called triggers for cuts if goals aren’t met also means nothing. Remember Gramm-Rudman?
Giving up tax increases on the wealthy is probably Obama’s biggest concession, but that fight lives for another day when the Bush cuts are scheduled to expire later on.
Even if liberals beat up the President for this deal, he wins. Nothing would help him more in his obvious effort to move to the center and appeal to independent voters for reelection.