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)