The Bipartisan Compromise

THE BIPARTISAN COMPROMISE EXPLAINED IN THREE STEPS WHITEHOUSE.GOV Removes the cloud of uncertainty DEBT LIMIT THROUGH 2013 IN TWO STAGES 1 $2.1 TRILLION ENABLING US TO PAY FOR EXISTING CO M M ITMENTS (TWO WARS, BUSH TAX CUTS, INVESTMENTS IN EDUCATION) increased BY AT LEAST over our economy. 10 - YEAR SPENDING CUTS OF NEARLY Protects Pell Grants. Done in a way to not harm the economic recovery, are balanced between domestic and security spending. $1 TRILLION BIPARTISAN ESTABLISHES A COMMITTEE $1.5 TRILLION an additional IN DEFICIT REDUCTION. TASKED WITH IDENTIFYING Bipartisan committee is tasked with identifying $1.5 trillion in deficit reduction. The committee is required to report legislation by November 23, 2011. Legislation is fast tracked through Congress with protections against filibustering and amendments. COMMITTEE RECOMMENDATIONS CONGRESS 6 REPUBLICANS 6 DEMOCRATS Congress is required to vote on Committee recommendations by December 23, 2011. If a balanced agreement is not reached, President Obama can always veto any extension of the Bush high income tax cuts, which would add nearly $1 Trillion to our bottom line. ENFORCEMENT MECHANISM (AKA TRIGGER) Agreement Met in Congress. The $1.2 trillion would be divided equally between defense and non-defense If an agreement isn't signed into law, automatic cuts are triggered, starting in 2013, on certain spending programs to ensure that an additional $1.2 trillion is removed from the deficit. programs. Social Security, Medicaid, programs for low-income families, and civilian and military retirement are exempt from this trigger. These cuts provide a strong incentive for both sides to come to the table. If the bipartisan committee takes no action, the trigger automatically adds nearly $500 billion additional defense cuts while also cutting critical programs like infrastructure and education. That outcome is unacceptable to both Republicans and Democrats alike - creating pressure for a bipartisan agreement without requiring the threat of a default with unthinkable consequences for our economy. WWW.WHITEHOUSE.GOV