- 12/04/10 06:12 PM ET
Fiscal hawks on both sides of the aisle are hopeful that the work done by President Obama's deficit commission will help Congress find a workable compromise on budget issues in the months ahead.
While the presidential panel failed to officially endorse a plan at its final meeting on Friday, the group came closer to consensus than many had expected. Eleven of the panel's 18 members voted for the proposal, even though it touched the “third rail” of Social Security and included tax increases.
Nonetheless, the final vote tally of 11 in favor, 7 opposed, was not enough to move the deficit recommendations to a floor vote in Congress. Under the executive order signed by Obama that established the commission, 14 of the panel's 18 members had to agree to plan in order for it to reach that point.
Many of the commission members who were "no" votes on the plan, including House Republicans, expressed enthusiasm for the deficit-reduction framework and said it deserves to be the starting point for future talks. On the left, "no" votes Rep. Xavier Becerra (D-Calif.) called it a "template," while former union president Andy Stern said it deserves a vote in Congress.
The fact that a majority of the panel voted in favor of the plan was a surprising turnaround. Observers had expected that the plan’s mix of tax revenue increases and cuts to entitlement programs would prove too radioactive for any elected commission members to back.
The fiscal commission's co-chairman, Democrat Erskine Bowles, expressed the prevailing pessimism back in July when he said, "Anybody who thinks we have a big chance to get this done is crazy."
The political pain was palpable in the Dirksen hearing room on Friday as panel co-chairman Alan Simpson noted that the vote was likely the most difficult some panelists had ever taken.
“I thought frequently, 'Thank God I’m not running again,'" outgoing House Budget Committee Chairman John Spratt (D-S.C.) said in announcing his vote in favor of the plan. Spratt lost his re-election bid in November and was the only House commissioner to vote in favor.
Highlighting the political peril endorsing the plan carried, powerful constituencies blasted it this week. AARP called the report's recommendations “unbalanced” and said they would raise out-of-pocket costs for Medicare recipients by as much as $7,500.
The influential conservative group Americans for Tax Reform, meanwhile, warned GOP signatories of its Taxpayer Protection Pledge not to support the plan because it eliminates tax credits that partially pay for new spending.
Democrat deficit hawks think the administration should seize on the plan as a reasonable compromise and run with it, rather than wait for House Republicans to seize the initiative next year, even though the plan has cuts to entitlement spending that could inflame the liberal base.
One of the commission's members, Senate Budget Committee Chairman Kent Conrad (D-N.D.), on Friday called for a budget summit between the White House and congressional leaders as the next step in efforts to reduce tackle the nation's budgetary issues.
Similarly, House Majority Leader Steny Hoyer (D-MD) said Friday’s vote is a sign that a “bipartisan consensus” is forming around “putting our entitlements on more stable footing; responsible spending cuts that take all parts of our budget into account, both non-defense discretionary and defense; and fair tax simplification that also raises revenue.”
Even though House Republicans want to get a crack first at drafting their own more austere budget resolution, they said they too will use elements of the plan as a starting point.
Another member of the commission, incoming House Budget Committee Chairman Paul Ryan (R-Wis.), on Friday issued a detailed analysis of the plan, pointing out that “many of its elements are surely worthy of further pursuit.” Ryan was one of the "no" votes.
"It is a serious and credible deficit-reduction plan," Ryan wrote. "I look forward to working with my colleagues in Congress to build on the success of this commission."
Ryan praised the plan for freezing spending in 2012 at 2010 levels and then requiring a 1 percent cut in discretionary spending between 2013 and 2015. He said the cuts should go deeper, however, in line with the Republican Pledge to America platform. Spending should be cut to 2008 levels next year, he said.
From the tax-writing Ways and Means Committee, incoming Chairman David Camp (D-Mich.) Friday vowed to hold hearings on the plan next year.
Under intense pressure from freshmen and the Tea Party to make deep cuts fast, incoming House Majority Leader Eric Cantor (R-Va.) said that Congress needs to establish its fiscal credibility by making cuts quickly next year.
Cantor and likely House Speaker John Boehner (R-Ohio) did not flatly reject the commission's plan, however. Boehner said that, with the commission's work complete, it's time to have an "adult conversation" on the debt.
Third Way President Jon Cowan said in an interview that Obama should take up most of the plan into his next budget since the plan is a far better place to start than a Ryan austerity budget.
"My message to progressives, and I am one of them, is that unless we take on the task of trimming our cherished entitlement programs they are going to collapse under their own weight," Cowan said.
The next key moment in the debate over the deficit could come this spring, when Congress will need to vote on raising the nation's debt ceiling. One administration official said a six-month timeframe for new negotiations on a deficit-deduction plan could be proposed as a compromise with Republicans in exchange for a temporary increase on the debt ceiling.
While the presidential panel failed to officially endorse a plan at its final meeting on Friday, the group came closer to consensus than many had expected. Eleven of the panel's 18 members voted for the proposal, even though it touched the “third rail” of Social Security and included tax increases.
Nonetheless, the final vote tally of 11 in favor, 7 opposed, was not enough to move the deficit recommendations to a floor vote in Congress. Under the executive order signed by Obama that established the commission, 14 of the panel's 18 members had to agree to plan in order for it to reach that point.
Many of the commission members who were "no" votes on the plan, including House Republicans, expressed enthusiasm for the deficit-reduction framework and said it deserves to be the starting point for future talks. On the left, "no" votes Rep. Xavier Becerra (D-Calif.) called it a "template," while former union president Andy Stern said it deserves a vote in Congress.
The fact that a majority of the panel voted in favor of the plan was a surprising turnaround. Observers had expected that the plan’s mix of tax revenue increases and cuts to entitlement programs would prove too radioactive for any elected commission members to back.
The fiscal commission's co-chairman, Democrat Erskine Bowles, expressed the prevailing pessimism back in July when he said, "Anybody who thinks we have a big chance to get this done is crazy."
The political pain was palpable in the Dirksen hearing room on Friday as panel co-chairman Alan Simpson noted that the vote was likely the most difficult some panelists had ever taken.
“I thought frequently, 'Thank God I’m not running again,'" outgoing House Budget Committee Chairman John Spratt (D-S.C.) said in announcing his vote in favor of the plan. Spratt lost his re-election bid in November and was the only House commissioner to vote in favor.
Highlighting the political peril endorsing the plan carried, powerful constituencies blasted it this week. AARP called the report's recommendations “unbalanced” and said they would raise out-of-pocket costs for Medicare recipients by as much as $7,500.
The influential conservative group Americans for Tax Reform, meanwhile, warned GOP signatories of its Taxpayer Protection Pledge not to support the plan because it eliminates tax credits that partially pay for new spending.
Democrat deficit hawks think the administration should seize on the plan as a reasonable compromise and run with it, rather than wait for House Republicans to seize the initiative next year, even though the plan has cuts to entitlement spending that could inflame the liberal base.
One of the commission's members, Senate Budget Committee Chairman Kent Conrad (D-N.D.), on Friday called for a budget summit between the White House and congressional leaders as the next step in efforts to reduce tackle the nation's budgetary issues.
Similarly, House Majority Leader Steny Hoyer (D-MD) said Friday’s vote is a sign that a “bipartisan consensus” is forming around “putting our entitlements on more stable footing; responsible spending cuts that take all parts of our budget into account, both non-defense discretionary and defense; and fair tax simplification that also raises revenue.”
Even though House Republicans want to get a crack first at drafting their own more austere budget resolution, they said they too will use elements of the plan as a starting point.
Another member of the commission, incoming House Budget Committee Chairman Paul Ryan (R-Wis.), on Friday issued a detailed analysis of the plan, pointing out that “many of its elements are surely worthy of further pursuit.” Ryan was one of the "no" votes.
"It is a serious and credible deficit-reduction plan," Ryan wrote. "I look forward to working with my colleagues in Congress to build on the success of this commission."
Ryan praised the plan for freezing spending in 2012 at 2010 levels and then requiring a 1 percent cut in discretionary spending between 2013 and 2015. He said the cuts should go deeper, however, in line with the Republican Pledge to America platform. Spending should be cut to 2008 levels next year, he said.
From the tax-writing Ways and Means Committee, incoming Chairman David Camp (D-Mich.) Friday vowed to hold hearings on the plan next year.
Under intense pressure from freshmen and the Tea Party to make deep cuts fast, incoming House Majority Leader Eric Cantor (R-Va.) said that Congress needs to establish its fiscal credibility by making cuts quickly next year.
Cantor and likely House Speaker John Boehner (R-Ohio) did not flatly reject the commission's plan, however. Boehner said that, with the commission's work complete, it's time to have an "adult conversation" on the debt.
Third Way President Jon Cowan said in an interview that Obama should take up most of the plan into his next budget since the plan is a far better place to start than a Ryan austerity budget.
"My message to progressives, and I am one of them, is that unless we take on the task of trimming our cherished entitlement programs they are going to collapse under their own weight," Cowan said.
The next key moment in the debate over the deficit could come this spring, when Congress will need to vote on raising the nation's debt ceiling. One administration official said a six-month timeframe for new negotiations on a deficit-deduction plan could be proposed as a compromise with Republicans in exchange for a temporary increase on the debt ceiling.
Interesting Comments
There will be no such bravery, no such much-needed sacrifice. The thing about the bi-partisan commission's recommendation: it was a PACKAGE. 1 solid object, from the brightest minds of the Left and the Right. Packaging the unshaven rough stuff, without pulling any punches. Take out ANY one thing—- to favor Republican partisan wants or Democratic party wants—- and it dissolves completely, as chaotic bickering will erupt over every tiny aspect, and, has happened throughout the entire last century, the whole prospect of what's GENUINELY needed—- bravery over politics—- will be thrown overboard in favor of partisan posturing in preparation for the next election cycle.BY on 12/04/2010 at 20:25
I'm basically with Abe. I think it is a very good at least start towards a solution to a problem that can no longer be ignored. All one needs to do is to look at the riots in Greece, and all over Europe to see what is in our future if we do not make very difficult decisions, and quick. I'm in Real Estate and know first hand how many would be affected by the end of the mortgage deduction, but I say it is worth the sacrifice. We would get 3 simple brackets 8,15,23%. The corporate rate would come down to 25% which would encourage hiring. No one is going to like it all. But I agree with you Honest Abe, if we want to leave our kids a better future we need to "man up" and get this done.BY on 12/04/2010 at 21:48
danceswithtrees : that would only work if people receiving those rates signed a contract that they would create work for others
penalty of death for not.BY on 12/04/2010 at 22:45
penalty of death for not.BY on 12/04/2010 at 22:45
Fiscal Hawks, my A**.As one wag put it..this was a compromise between the left..and the far left. It institutionaliz es Obamacare..you think Sen. Coburn missed that part? It does not touch on Stupid trade deals, the cancer of illegal immigration, the cancer of steroids of Chain Migration of the world's poor in staggering numbers..The Price of shipping all industrial production overseas..like the current Free Trade deal with S.Korea..THE POISON PILL…USA cars have to met 'safetly' stands of S.Korea. So S.Korean safetly standards for autos are FAR lower than the USA. So every USA card made .all 25,000 that can 'sell: in S korea WILL be so much higher priced..they are unaffordable. THEN S.Korea..with much cheaper autos because their polticans don't pile safety..Greenie stuff on their autos..CAN SHIP THOSE CARS INTO THE USA..WITH MUCH LOWER SAFETY STANDARDS..SELL AS MANY AS THEY CAN..THIS IS WHY THE USA HAS A TRADE DEFICENT WITH EVERY FREE TRADE DEAL WITH ANY NATION. OBAMA IS A LIAR IF HE SAYS IT WILL BENFIT THE USA..AND I DON'T SAY THAT LIGHTLY. CUTTING OLD PEOPLE…IS GOING TO DO LITTLE TO SOLVE THE MESS OUR CORRUPT POLITICANS AND TRADE TEAMS HAVE CREATED..AND the endless wars in God only knows how many nations? Think of drug testing all Govt. Checks? I mean..Private business does it. How many drug addicts do we have to support and buy the drugs for them? How many children is one single mother allowed to have before some one says NO MORE. How many bailouts for how many banks? Anyone getting a handle on the secret Global Federal Reserve that can PRINT USA DOLLARS AT WILL and IN SECRET? What about the Orgy of rewarding Special Interests groups The democrats are doing in a lame duck session? They think we will forget Pifford? Food safety bill for Montsora..Think Soros. Dream Act? NEVER. WE WILL NEVER FORGET. Nov. 2012..not that far away.ANd Republicans ..stuck on defending the Rich..who trickle down nothing and create NO or very jobs that pay over Minimum wage? UGH. Bush flashback. Double Ugh.BY on 12/05/2010 at 08:07
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