Put the security of the nation at risk or raise taxes. This is the sour “deal” liberal lawmakers are offering in exchange for insufficient spending cuts, according to reports of this weekend’s debt negotiations in Washington.
The framework that Republicans and Democrats are close to approving would raise the debt limit by at least $2.1 trillion and get Obama and congressional Democrats past their target date: Election Day 2012. In return for this generous political cover, Democrats would agree to a modest $1 trillion in supposed cuts spread out over 10 years; $350 billion of those “upfront” savings come from gutting national security resources.
A trillion dollars over 10 years is not sufficient to impress credit rating agencies, which have threatened to downgrade America’s credit status unless Congress enacts real measures to reform spending and lower the deficit. In fact, on Friday, Moody’s announced that neither the Boehner plan nor the Reid plan had sufficient cuts, saying: “Reductions of the magnitude now being proposed, if adopted, would likely lead Moody’s to adopt a negative outlook on the AAA rating.” The current plan does not improve upon either of those earlier plans.
In addition to the $1 trillion, the framework sets up a “special” congressional committee that would seek $1.4 trillion in “deficit reduction” by the end of 2011. Of course, for liberals, “deficit reduction” is synonymous with “higher taxes.”Continue reading on blog.heritage.org