Economics Magazine

White House Backed Senate Proposal To Replace Sequester Would Raise Deficit By $7.2 Billion

Posted on the 28 February 2013 by Susanduclos @SusanDuclos

By Susan Duclos
The Sequester: On March 1, $85 billion in across-the-board federal spending cuts—known in Washington as the sequester or sequestration, are set to begin, prompted by a 2011 law designed to reduce the government's budget deficit.
The whole purpose of the sequester was to lower the deficit, yet the White House backed Senate proposal to replace the sequester, raises the deficit by $7.2 billion according to the Congressional Budget Office (CBO) analysis of Harry Reid's proposal.

CBO and the staff of the Joint Committee on Ta xation (JCT) estimate that enacting the bill would increase budget deficits from change s in direct spending and revenues by $7.2 billion over the 2013 -2023 period. Because enacting the legislation would affect direct spending and revenues, pay-as-you-go procedures apply.

 It reads like a joke, but other reports on the White House backed deal, confirms this is no joke.
AP:
White House-backed legislation in the Senate to replace $85 billion in across-the-board spending cuts would raise the deficit through the end of the budget year by tens of billions of dollars, officials said late Wednesday as the two parties maneuvered for public support on economic issues.

The Obama/Democrats plan assumes Congress can work together and that eventually the deficit will be lowered with their plan.....direct quote from the CBO report "The legislation also would reduce discretionary spending by $9.0 billion over the same period, assuming appropriations actions consistent with the bill."
Big, big assumption there, excuse me while I laugh myself off my chair.
In other words... we are going to increase spending in order to decrease it. Huh?
The GOP reminds people what the CBO said about the two previous House generated and passed  sequester replacement bills.
FLASHBACK: The House Proposal To Replace The Sequester Put Forth In December Would Have Decreased The Deficit By $217.7 Billion. “The Congressional Budget Office (CBO) has reviewed H.R. 6684, the Spending Reduction Act of 2012, as posted on the Web site of the House Committee on Rules on December 19, 2012. The enclosed table shows estimates of the legislation’s effects on direct spending and revenues, assuming enactment around January 1, 2013.Assuming enactment around January 1, 2013, CBO and the staff of the Joint Committee on Taxation estimate that enacting H.R. 6684 would yield net deficit reduction of $217.7 billion over the 2013-2022 period.” (Douglas W. Elmendorf, CBO Director, Letter To Rep. David Drier, 12/20/12)
FLASHBACK: The House Proposal To Replace The Sequester Put Forth In May Would Have Decreased The Deficit By $333 Billion. “The Congressional Budget Office (CBO) has reviewed the Sequester Replacement Reconciliation Act, as ordered reported by the House Committee on the Budget on May 7, 2012. The two enclosed tables present estimates of the legislation’s effects on direct spending and revenues under two alternative enactment date assumptions. Table 1 provides estimates assuming enactment around October 1, 2012, while Table 2 provides estimates assuming enactment by July 1, 2012, as you directed in your letter to CBO dated April 2, 2012. Assuming enactment around October 1, 2012, CBO and the staff of the Joint Committee on Taxation (JCT) estimate that the reconciliation act would reduce deficits by $15.3 billion over the 2012-2013 period, by $136.9 billion over the 2012-2017 period, and by $328.0 billion over the 2012-2022 period. Under assumed enactment by July 1, 2012, CBO and JCT estimate that the legislation would reduce deficits by $19.7 billion over the 2012-2013 period, by $142.0 billion over the 2012-2017 period, and by $333.0 billion over the 2012-2022 period.” (Douglas W. Elmendorf, CBO Director, Letter To Rep. Paul Ryan, 5/8/12)


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Frank Turner, Sam Coffey, and Bad Cop / Bad Cop Takeover Toronto!

    Frank Turner and The Sleeping Souls played the middle show of a three-night takeover of The Phoenix Concert Theatre in Toronto on Thursday night, and things... Read more

    The 23 September 2018 by   Phjoshua
    LIFESTYLE, SELF EXPRESSION
  • Our Favorite TV Shows of All-Time

    Even though we live in Los Angeles where the weather is nice most of the year, during the fall we sometimes just want to stay in, prepare a cup of hot cocoa... Read more

    The 23 September 2018 by   A Girl In La - Style Blog
    DIARIES, LIFESTYLE
  • Finished Boys Bedroom Makeover: Ethans Blue, White And Red Big Boy Room

    Finished Boys Bedroom Makeover: Ethans Blue, White Room

    Our little boy Ethan's, bedroom makeover is now finished and it feels so good to finally be able to say that! If you've been following our renovation journey,... Read more

    The 23 September 2018 by   Alex_bumptobaby
    DIARIES, SELF EXPRESSION
  • Will Our Inventions Make Us Irrelevant?

    Will Inventions Make Irrelevant?

    We have the tools to redesign life to fulfil our wildest dreams. But do we know ourselves any more, asks Yuval Noah Harari in his latest book 21 Lessons for th... Read more

    The 23 September 2018 by   Thinkibility
    BUSINESS, LIFE COACH
  • House of Indya

    House Indya

    The festive season is already knocking on the door. Am sure many of us including me obviously is active in binge mode searching for ethnic collections like... Read more

    The 23 September 2018 by   Chayanikarabha
    FASHION, LIFESTYLE, SHOPPING
  • How to Worsen Diabetes: Follow the ADA and CDA Advice

    Worsen Diabetes: Follow Advice

    If you have a new diagnosis of type 2 diabetes, or have been dealing with the condition for years, where's a natural place you might go for support and... Read more

    The 23 September 2018 by   Dietdoctor
    DIET & WEIGHT, HEALTH, HEALTHY LIVING, MEDICINE
  • Safely Stored Away

    Safely Stored Away

    A bit of a panic today when I saw that temperatures might go down to 3C tonight and tomorrow night.  Whilst I had started to move some of my tender plants... Read more

    The 23 September 2018 by   Patientgardener
    GARDENING, HOME