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The so-called fact sheet released by the White House declared up front: “The President will insist on shared sacrifice from the most well off and those with the most indefensible tax breaks.” The enforcement mechanism in the agreement will trigger spending reductions beginning in 2013—split 50/50 between domestic and defense spending.
“Enforcement,” the White House fact sheet said, “protects Social Security, Medicare beneficiaries, and low-income programs from any cuts.” That would eliminate an unidentified raft of programs that subsidize the poor from the budget-cutting knife.
The deal, said the fact sheet, includes funding an Obama favorite — the Pell Grants — a maximum award of which is $5,500. For 9 million students, that would be $49 billion. Pell grants, unlike regular college loans, never have to be repaid.
If the powerful 12-person debt-reduction committee “took no action, the deal would automatically add nearly $500 billion in defense cuts on top of cuts already made, and, at the same time, it would cut critical programs like infrastructure or education.” Steep defense cuts possible in the sequester process would be “very high risk,” according to field commanders.
The White House fact sheet further states: “The Deal sets the stage for Balanced Deficit Reduction with the President’s values….And the President will demand that the committee pursue a balanced deficit reduction package where any entitlement reforms are coupled with revenue-raising tax reform that asks the most fortunate Americans to sacrifice.” (There he goes again.)
“The Enforcement Mechanism Complements the Forcing Event Already in the Law—the Expiration of the Bush Tax Cuts—To Create Pressure for a Balanced Deal: The Bush tax cuts expire [Obama can hardly wait] as of 1/1/2013, the same date that the spending sequester would go into effect. These two events together will force balanced deficit reduction. Absent a balanced deal, it would enable the President to use his veto pen to ensure nearly $1 trillion in additional deficit reduction by not extending the high-income tax cuts.”
You can see him just rubbing his hands together with relish. With such failed policies in store, it is doubtful America will be on the road to recovery anytime soon.
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