White House and Republicans Reach Budget Deal - Including Disability
Insurance Cuts
Tuesday, 27 October 2015 00:00 By Lisa Mascaro, Los Angeles Times | Report
The White House and congressional Republican leaders reached a budget
agreement late Monday that would resolve the stalemate over paying for
federal programs and could end the threat of another government shutdown for
the rest of President Obama's term.
The $80-billion, two-year budget accord would increase spending somewhat on
defense and domestic programs, rolling back some of the automatic cuts known
as sequesters that Obama repeatedly has denounced.
The deal is likely to face opposition from both right and left. Earlier in
the evening, as news of the possible accord spread, some conservative groups
denounced the additional spending as a betrayal, while some liberal groups
warned against the possibility that trims in benefits would be agreed upon
to pay for parts of the agreement.
The package also would raise the nation's borrowing limit and avert the risk
of a credit default, which could come as early as Nov. 3. In addition, the
deal is expected to block price increases on seniors who use Medicare Part
B, halting forthcoming boosts in their premiums and deductibles.
A vote on the deal could come as early as Wednesday.
Progress came as a surprise; many had doubted the White House and
Republicans could come to terms. It would be one of the final legislative
acts of House Speaker John A. Boehner (R-Ohio), who is preparing to retire
this week after repeated confrontations with his party's hard-right flank.
Boehner met with his leadership team Monday afternoon and convened
rank-and-file lawmakers for a hastily called private evening session.
"Fiscal negotiations are ongoing," said Senate Majority Leader Mitch
McConnell (R-Ky.) as he opened the Senate. "As the details come in, and
especially if an agreement is reached, I intend to consult and discuss the
details with our colleagues."
The White House praised the deal Tuesday as a "responsible agreement" aimed
at economic growth and security for the middle class.
An administration official said the deal, which would all but end the threat
of another government shutdown during Obama's time in office, is a
"compromise" that proves bipartisan cooperation is possible.
"It is promising that Democrats and Republicans in Congress were able to
come together to reach a strong agreement that would break the cycle of
shortsighted, crisis-driven decision-making," the official said in a
statement.
After abruptly announcing his retirement last month, Boehner had vowed to
"clean up the barn" for his successor. Resolving the budget standoff would
clear one of the most divisive issues from the agenda of Rep. Paul D. Ryan
(R-Wis.), who is expected to be elected the next House speaker this week.
The more legislation Boehner can muscle through the testy GOP-led House in
the days ahead, the smoother the transition will be for Ryan.
The measure to lift the nation's debt limit, currently at $18.1 trillion,
through March 2017 would be tacked on to the budget deal, according to
congressional aides, who did not want to be identified speaking about the
sensitive negotiations.
Boehner's critics on the right quickly sought to galvanize Republican
opposition, and conservative lawmakers left the evening meeting fuming that
the speaker was cutting a last-minute deal before stepping aside.
"The only reason you negotiate in the dark is because Republicans won't
accept it," said Rep. Tim Huelskamp (R-Kan.). One lawmaker stood up during
the private session and asked why Boehner, not Ryan, was at the negotiating
table. Ryan, according to those in the room, did not address the issue.
"In Washington, cleaning the barn is apparently synonymous with shoveling
manure on the American people," said Heritage Action Chief Executive Michael
A. Needham. "John Boehner is clearly a rogue agent negotiating on behalf of
well-connected special interests, not the voters that gave him the gavel."
Liberal groups voiced their own concerns.
"The White House needs to know that any budget deal that cuts Social
Security, Medicare or Medicaid benefits, or eligibility for those benefits,
is unacceptable to the American people and roughly equivalent to declaring a
holy war on struggling working families," said Jim Dean, chairman of
Democracy for America.
For weeks, aides to congressional leaders and the White House have been
meeting behind closed doors on a possible budget deal. The aim has been to
roll back some of the steep sequester cuts that were agreed to after a 2011
debt ceiling showdown. Both parties have wanted to undo the sequester cuts,
for different reasons.
Republicans have wanted to halt cuts to the Pentagon, while Democrats have
sought to ease reductions to domestic programs.
Talks had dragged, though, as the two sides tried to figure out how to pay
for the increased spending.
The deal probably would be paid for with a combination of budget cuts
elsewhere, new fees and partial reliance on an overseas contingency fund set
aside for military operations.
The deal would adjust spending caps for two years by a total of $80 billion
- $50 billion the first year and $30 billion in the second - equally divided
between defense and nondefense spending, according to a person familiar with
the negotiations.
An additional $32 billion in spending over the two years will come from the
overseas contingency account, which brings the total package to $112
billion. Republicans had suggested tapping that account before to boost
military funding, but Democrats and even some Republicans argued it was an
accounting gimmick because the emergency war fund was not intended for such
a purpose.
The bulk of the costs would be paid for by clipping government programs and
raising fees on others in ways that would cause political discomfort on both
sides of the partisan line.
Democrats probably will object to cuts in the Social Security Disability
Insurance program that would lower part of the benefits individuals receive
based upon any wages they earn. Republicans probably will pan new tax-filing
fees.
The GOP will score a victory with another provision that would do away with
an Affordable Care Act requirement that larger companies automatically sign
up workers for healthcare unless the workers specifically opt out.
Businesses have fought the requirement.
"I hope that Democrats and Republicans will come to a resolution soon that
is good for our country," said Senate Minority Leader Harry Reid (D-Nev.).
"As I have been saying for years, it is past time that we do away with the
harmful, draconian sequester cuts."
Passage is a multi-step process, giving opponents ample opportunity to
derail the deal. Even if the deal is approved this week, Congress still
would need to pass a separate spending bill to keep the government running
after the Dec. 11 deadline. If it fails to do so, the specter of a
government shutdown could reappear.
This final effort by Boehner could result in a politically heroic act to
resolve looming crises despite deep resistance from the GOP majority in the
House - or it could cement his reputation among hard-right Republicans that
his willingness to compromise with Obama makes him insufficiently
conservative.
"Listen, this is not about us," Boehner said last week. "Our job is to do
the right thing for the American people every day. You have heard me say
this multiple times, and I will say it one more time: If you do the right
things for the right reasons every day, the right things will happen for our
country."
Also Monday, the House advanced legislation to salvage the Export-Import
Bank, a Depression-era financing entity that big business says is vital for
exports but conservatives deride as crony capitalism.
This year, conservatives succeeded in beginning to close the bank by failing
to authorize new lending. A brutal lobbying campaign over the bank has been
underway on both sides of the issue.
A bipartisan majority in the House that wants to revive the bank pushed the
vote forward with a rare "discharge petition" procedure, which hasn't been
fully deployed since the 1970s. Boehner did not stand in the way.
C 2015 McClatchy-Tribune Information Services. Truthout has licensed this
content. It may not be reproduced by any other source and is not covered by
our Creative Commons license.
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White House and Republicans Reach Budget Deal - Including Disability
Insurance Cuts
Tuesday, 27 October 2015 00:00 By Lisa Mascaro, Los Angeles Times | Report
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reference not valid.
. The White House and congressional Republican leaders reached a
budget agreement late Monday that would resolve the stalemate over paying
for federal programs and could end the threat of another government shutdown
for the rest of President Obama's term.
. The $80-billion, two-year budget accord would increase spending
somewhat on defense and domestic programs, rolling back some of the
automatic cuts known as sequesters that Obama repeatedly has denounced.
The deal is likely to face opposition from both right and left. Earlier in
the evening, as news of the possible accord spread, some conservative groups
denounced the additional spending as a betrayal, while some liberal groups
warned against the possibility that trims in benefits would be agreed upon
to pay for parts of the agreement.
The package also would raise the nation's borrowing limit and avert the risk
of a credit default, which could come as early as Nov. 3. In addition, the
deal is expected to block price increases on seniors who use Medicare Part
B, halting forthcoming boosts in their premiums and deductibles.
A vote on the deal could come as early as Wednesday.
Progress came as a surprise; many had doubted the White House and
Republicans could come to terms. It would be one of the final legislative
acts of House Speaker John A. Boehner (R-Ohio), who is preparing to retire
this week after repeated confrontations with his party's hard-right flank.
Boehner met with his leadership team Monday afternoon and convened
rank-and-file lawmakers for a hastily called private evening session.
"Fiscal negotiations are ongoing," said Senate Majority Leader Mitch
McConnell (R-Ky.) as he opened the Senate. "As the details come in, and
especially if an agreement is reached, I intend to consult and discuss the
details with our colleagues."
The White House praised the deal Tuesday as a "responsible agreement" aimed
at economic growth and security for the middle class.
An administration official said the deal, which would all but end the threat
of another government shutdown during Obama's time in office, is a
"compromise" that proves bipartisan cooperation is possible.
"It is promising that Democrats and Republicans in Congress were able to
come together to reach a strong agreement that would break the cycle of
shortsighted, crisis-driven decision-making," the official said in a
statement.
After abruptly announcing his retirement last month, Boehner had vowed to
"clean up the barn" for his successor. Resolving the budget standoff would
clear one of the most divisive issues from the agenda of Rep. Paul D. Ryan
(R-Wis.), who is expected to be elected the next House speaker this week.
The more legislation Boehner can muscle through the testy GOP-led House in
the days ahead, the smoother the transition will be for Ryan.
The measure to lift the nation's debt limit, currently at $18.1 trillion,
through March 2017 would be tacked on to the budget deal, according to
congressional aides, who did not want to be identified speaking about the
sensitive negotiations.
Boehner's critics on the right quickly sought to galvanize Republican
opposition, and conservative lawmakers left the evening meeting fuming that
the speaker was cutting a last-minute deal before stepping aside.
"The only reason you negotiate in the dark is because Republicans won't
accept it," said Rep. Tim Huelskamp (R-Kan.). One lawmaker stood up during
the private session and asked why Boehner, not Ryan, was at the negotiating
table. Ryan, according to those in the room, did not address the issue.
"In Washington, cleaning the barn is apparently synonymous with shoveling
manure on the American people," said Heritage Action Chief Executive Michael
A. Needham. "John Boehner is clearly a rogue agent negotiating on behalf of
well-connected special interests, not the voters that gave him the gavel."
Liberal groups voiced their own concerns.
"The White House needs to know that any budget deal that cuts Social
Security, Medicare or Medicaid benefits, or eligibility for those benefits,
is unacceptable to the American people and roughly equivalent to declaring a
holy war on struggling working families," said Jim Dean, chairman of
Democracy for America.
For weeks, aides to congressional leaders and the White House have been
meeting behind closed doors on a possible budget deal. The aim has been to
roll back some of the steep sequester cuts that were agreed to after a 2011
debt ceiling showdown. Both parties have wanted to undo the sequester cuts,
for different reasons.
Republicans have wanted to halt cuts to the Pentagon, while Democrats have
sought to ease reductions to domestic programs.
Talks had dragged, though, as the two sides tried to figure out how to pay
for the increased spending.
The deal probably would be paid for with a combination of budget cuts
elsewhere, new fees and partial reliance on an overseas contingency fund set
aside for military operations.
The deal would adjust spending caps for two years by a total of $80 billion
- $50 billion the first year and $30 billion in the second - equally divided
between defense and nondefense spending, according to a person familiar with
the negotiations.
An additional $32 billion in spending over the two years will come from the
overseas contingency account, which brings the total package to $112
billion. Republicans had suggested tapping that account before to boost
military funding, but Democrats and even some Republicans argued it was an
accounting gimmick because the emergency war fund was not intended for such
a purpose.
The bulk of the costs would be paid for by clipping government programs and
raising fees on others in ways that would cause political discomfort on both
sides of the partisan line.
Democrats probably will object to cuts in the Social Security Disability
Insurance program that would lower part of the benefits individuals receive
based upon any wages they earn. Republicans probably will pan new tax-filing
fees.
The GOP will score a victory with another provision that would do away with
an Affordable Care Act requirement that larger companies automatically sign
up workers for healthcare unless the workers specifically opt out.
Businesses have fought the requirement.
"I hope that Democrats and Republicans will come to a resolution soon that
is good for our country," said Senate Minority Leader Harry Reid (D-Nev.).
"As I have been saying for years, it is past time that we do away with the
harmful, draconian sequester cuts."
Passage is a multi-step process, giving opponents ample opportunity to
derail the deal. Even if the deal is approved this week, Congress still
would need to pass a separate spending bill to keep the government running
after the Dec. 11 deadline. If it fails to do so, the specter of a
government shutdown could reappear.
This final effort by Boehner could result in a politically heroic act to
resolve looming crises despite deep resistance from the GOP majority in the
House - or it could cement his reputation among hard-right Republicans that
his willingness to compromise with Obama makes him insufficiently
conservative.
"Listen, this is not about us," Boehner said last week. "Our job is to do
the right thing for the American people every day. You have heard me say
this multiple times, and I will say it one more time: If you do the right
things for the right reasons every day, the right things will happen for our
country."
Also Monday, the House advanced legislation to salvage the Export-Import
Bank, a Depression-era financing entity that big business says is vital for
exports but conservatives deride as crony capitalism.
This year, conservatives succeeded in beginning to close the bank by failing
to authorize new lending. A brutal lobbying campaign over the bank has been
underway on both sides of the issue.
A bipartisan majority in the House that wants to revive the bank pushed the
vote forward with a rare "discharge petition" procedure, which hasn't been
fully deployed since the 1970s. Boehner did not stand in the way.
C 2015 McClatchy-Tribune Information Services. Truthout has licensed this
content. It may not be reproduced by any other source and is not covered by
our Creative Commons license.
Related Stories
Budget Blowhards: Why the Budget Debate Is Destined to Become Ever More
Painful
By Dean Baker, Truthout | News AnalysisDebt Ceiling Deal: Wrong Diagnosis
Leads to Wrong Treatment for What Ails the Economy
By Dr Eileen Appelbaum, The Center for Economic and Policy Research |
Op-EdDisability Advocates, Nursing Home Industry Battle for Health Care
Dollars for Aging, Disabled
By Toshio Meronek, Truthout | Report
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