Tony Perkins Washington Update
While yesterdays temperatures soared so did hopes that a solution to Americas messy credit problems is in sight. Although nothing concrete has been introduced the two sides seem to have reluctantly agreed to a package that in the true spirit of compromise no one is altogether happy about. As Speaker John Boehner (R-Ohio) tried to manage his partys expectations (Now listen this isnt the greatest deal in the world) the reaction from House liberals was even more extreme.
A sugar-coated Satan sandwich is how Missouri Democrat Emanuel Cleaver described it--sending chefs across America scrambling for the recipe. As with the budget debate there is some genuine disappointment on the part of conservatives who had come to Washington to change the culture--not just change the conversation. From what we do know this agreement would raise the debt ceiling an additional $2.4 trillion in exchange for $1.2 trillion in cuts over the next decade.
Unfortunately for taxpayers most of these cuts are to what the country would have spent not what we are spending. In other words the government will keep growing just at a slower rate. The Left will have the satisfaction of raising our credit limit for six months but spreading the pain of cuts over 10 years.
Obviously we have no way to estimate what inflation will be in 2021 but we can look back on the cost of living over the last 10 years and see that the value of the dollar diminished by about 24 since 2001. If the next decade is similar to the last then $1 trillion in cuts today will be more like $800 million in cuts tomorrow. Whats more this deal is predicated on the notion that this Congress can bind the hands of the next Congress. Thats just not possible.
To help hold Congresss feet to the fire on deficit reduction the deal does asks for a second wave of spending cuts this year. The only hitch is those cuts would be determined by a select number of congressmen. Its been dubbed the Super Committee and judging by the description theres a lot to dislike. Twelve members (six from each chamber and six from each party) will have to find ways to slash the deficit by another $1.6 trillion before the end of the year.
If they dont a surge of cuts to the defense and Medicare budgets would automatically go into effect. The thinking is that Congress will be more inclined to find the cuts if the alternative is painful to both parties. While its an interesting idea the Super Committee would have super powers. To help fast-track the extra trillion and a half in cuts the 12 members would have almost unilateral control over what gets cut.
Unlike other bills members can offer no amendments--meaning that it could be used to as a vehicle to higher taxes or even radical social policy since there are no limits on the Committees jurisdiction. And because the Committees recommendations would only require 51 votes in the Senate--as opposed to the 60 that bills typically need for cloture--there would be few ways to stop them. Of course one would hope that with six Republicans and six Democratic members on the Committee all of these concerns would be put to rest. But given the track record of Republicans in the Senate over the last six months itll be hard to sleep at night. A lot of power would be given to this super Committee with very little accountability.
On the bright side the agreement does make a vote on the Balanced Budget Amendment a condition of the final deal. But to ease the pain of some Democrats the vote could happen after the election--sparing liberals the political risk of opposing an amendment thats so popular with voters. Republicans sweetened the pot by including a provision that allows President Obama to raise the debt ceiling by the full $2.4 trillion if the amendment passes out of Congress to the states which could help nudge more Democrats in the right direction.
A lot has to happen before this deal is a done deal but make no mistake. Any victories the GOP can claim in this debate are owed to hard-core conservatives like Reps. Jim Jordan (Ohio) Michele Bachmann (Minn.) Steve King (Iowa) and Louie Gohmert (Texas) who held firm in the face of enormous political pressure. Without their resolve there would have been little to negotiate.
