- Raise debt ceiling provisions through to end of 2012 as required, but most subject to deliberations of the congressional committee on spending cuts.
- Cut deficit immediately by $917 Billion.
- Cut deficit over next 10 years by a total of $18 Trillion by means to be proposed by the bipartisan congressional committee.
- This Committee must use current law(s) which includes expiration of all Bush tax cuts in 2013 for rich and a 50% reduction in the $1,000 child credit, and no adjustment to the Alternative Minimum Tax.
- If this Committee fails to agree on spending cuts by Thanksgiving for up to $1.5 Trillion, then $1.2 Trillion cuts will trigger automatically -- 1/2 to come from cuts in defense spending, and the rest primarily from non-defense discretionary spending, and some of it from entitlement program spending.
- Any cuts to Medicare that may be triggered will only impact the Providers and not the public who use the program.
- There is no tax reform mandatory in the deal, or for the Committee to consider.
- There is no net new revenue that will be considered.
- It is agreed that B.O. will veto an extension of the Bush tax cuts (see above) for those families earning more than $250,000 a year unless there is elimination of current tax subsidies.
Still needs to pass the House and the Senate. As I write this, we have no idea of where Pelosi, who has supposedly agreed to this, really stands.
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