Big budget blow back: Where do we go from here?

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 increased BY AT LEAST COM MI TMENTS (TWO WARS, BUSH TAX CUTS, INVESTMENTS IN EDUCATION) 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 3 BIPARTISAN ESTABLISHES A COMMIITEE $1.5 TRILLION IN DEFICIT REDUCTION. an additional 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 6 REPUBLICANS CONGRESS 6 DEMOCRATS Congress is required to vote on Committee recommendations by December 23, 2011. a balanced agreement not reached, President Obama can always veto any extension of the Bush high income tar cuts, which would add nearly $1 Trillion to or bottom line ENFORCEMENT MECHANISM Agreement Met in Congress. The $1.2 trillion would be divided equally between defense and non-defense (AKA TRIGGER) 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 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 increased BY AT LEAST COM MI TMENTS (TWO WARS, BUSH TAX CUTS, INVESTMENTS IN EDUCATION) 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 3 BIPARTISAN ESTABLISHES A COMMIITEE $1.5 TRILLION IN DEFICIT REDUCTION. an additional 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 6 REPUBLICANS CONGRESS 6 DEMOCRATS Congress is required to vote on Committee recommendations by December 23, 2011. a balanced agreement not reached, President Obama can always veto any extension of the Bush high income tar cuts, which would add nearly $1 Trillion to or bottom line ENFORCEMENT MECHANISM Agreement Met in Congress. The $1.2 trillion would be divided equally between defense and non-defense (AKA TRIGGER) 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 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 increased BY AT LEAST COM MI TMENTS (TWO WARS, BUSH TAX CUTS, INVESTMENTS IN EDUCATION) 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 3 BIPARTISAN ESTABLISHES A COMMIITEE $1.5 TRILLION IN DEFICIT REDUCTION. an additional 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 6 REPUBLICANS CONGRESS 6 DEMOCRATS Congress is required to vote on Committee recommendations by December 23, 2011. a balanced agreement not reached, President Obama can always veto any extension of the Bush high income tar cuts, which would add nearly $1 Trillion to or bottom line ENFORCEMENT MECHANISM Agreement Met in Congress. The $1.2 trillion would be divided equally between defense and non-defense (AKA TRIGGER) 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 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 increased BY AT LEAST COM MI TMENTS (TWO WARS, BUSH TAX CUTS, INVESTMENTS IN EDUCATION) 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 3 BIPARTISAN ESTABLISHES A COMMIITEE $1.5 TRILLION IN DEFICIT REDUCTION. an additional 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 6 REPUBLICANS CONGRESS 6 DEMOCRATS Congress is required to vote on Committee recommendations by December 23, 2011. a balanced agreement not reached, President Obama can always veto any extension of the Bush high income tar cuts, which would add nearly $1 Trillion to or bottom line ENFORCEMENT MECHANISM Agreement Met in Congress. The $1.2 trillion would be divided equally between defense and non-defense (AKA TRIGGER) 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 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 increased BY AT LEAST COM MI TMENTS (TWO WARS, BUSH TAX CUTS, INVESTMENTS IN EDUCATION) 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 3 BIPARTISAN ESTABLISHES A COMMIITEE $1.5 TRILLION IN DEFICIT REDUCTION. an additional 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 6 REPUBLICANS CONGRESS 6 DEMOCRATS Congress is required to vote on Committee recommendations by December 23, 2011. a balanced agreement not reached, President Obama can always veto any extension of the Bush high income tar cuts, which would add nearly $1 Trillion to or bottom line ENFORCEMENT MECHANISM Agreement Met in Congress. The $1.2 trillion would be divided equally between defense and non-defense (AKA TRIGGER) 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