Tuesday, August 2, 2011

The Deal - what's in it

As we noted earlier, the debt ceiling deal was approved by the House yesterday and will likely be approved by the Senate later today.  Here is a breakdown of what is actually in the agreement:

  • According to the Congressional Budget Office, the deal will cut $2.1 trillion from the federal deficit over the next ten years.
  • President Obama will have the ability to raise the debt ceiling by $2.1 trillion, which should be enough to cover the federal government until 2013.  
  • The savings would come from the following areas: discretionary spending, $741 billion (including defense spending), $156 billion from reduced interest on the federal deficit and $20 billion from education loan initiatives.  
  • The bill calls for the creation of a new Congressional committee that will examine ways to make reductions between $1.2 and $1.5 trillion.  If they cannot identify ways to do so, or if Congress fails to act on the committee's recommendations, cuts will occur automatically.  

Sources:

2 comments:

Jon Geeting said...

What's GLVCC's position on the deal? Is it likely to hurt job growth or help it?

Greater Lehigh Valley Chamber of Commerce said...

Jon, we have none. That being said, we are in the process of creating a tax policy - this will enable us to take positions on issues like this in the future.