Obama Hails Deficit-Reduction Plan Gaining Momentum in Senate

By Lori Montgomery and William Branigin

President Obama on Tuesday hailed an ambitious new deficit-reduction plan that is gaining momentum in the Senate, saying it could provide the vehicle to break an impasse over raising the federal borrowing limit while cutting the nation’s debt.Appearing at the regular White House news briefing, Obama said the bipartisan proposal is “broadly consistent” with the approach he has advocated in that it reduces discretionary spending and tackles health-care spending and entitlements while also raising additional revenue.

But in the event that an agreement capable of passing Congress is not reached before a looming deadline to raise the federal debt ceiling, Obama said, lawmakers should finishing hammering out a backup plan now being negotiated by the Senate’s Democratic and Republican leaders.

“We’re in the 11th hour, and we don’t have a lot more time left,” Obama said. “We don’t have any more time to engage in symbolic gestures.” He was referring to a House Republican plan that includes a balanced-budget amendment, which he said is not a “balanced” approach, could not pass both chambers and would be vetoed if it did.

Obama spoke after more than 40 Republicans and Democrats attended a morning briefing on the new Senate proposal, which would slice $3.7 trillion from the federal budget over the next decade.

The plan, drafted by a bipartisan group of senators known as the “Gang of Six,” has been in the works for months. After struggling to reach consensus and apparently disbanding last week, the group now says it’s nearing agreement on a proposal, which could offer an alternative strategy for pushing an increase in the debt limit through Congress before the Aug. 2 deadline.

“We’ve gone from a Gang of Six to a mob of 50,” exulted Sen. Joe Manchin (D-W. Va.), as he emerged from the meeting. The proposal, Manchin said, “shows great promise.”

“I will support it. It is a fair compromise,” added Sen. Kay Bailey Hutchison (R-Tex.). “This is a way forward where we can do the work that we have come here to do.”

Details of the plan were sketchy and it was not immediately clear how the proposal might be combined with existing debt-limit strategies. As described by its creators, the framework calls for $500 billion in immediate spending cuts as a downpayment on a broader debt-reduction effort that would be carried out largely by existing legislative committees.

Those committees would be given targets for savings from overhauling entitlement programs and rewriting the tax code. If the committees failed to produce a plan to meet the targets over the next six months, 10 senators — five from each party — could step in to offer their own debt-reduction plan.

The overall goals of the plan mirror President Obama’s fiscal commission: Deep cuts in government agencies, significant reductions in Medicare and a framework for keeping Social Security solvent over the next 75 years. It also seeks to raise $1 trillion in taxes over the next decade by rewriting the tax code to lower tax rates for households in all income categories while eliminating various tax breaks and deductions.

17 comments

  1. Great article CW—- I repeat, put all this out for bid to American Companies, pay the winning bid fairly with no “under the table Lobbying and political payoffs” and keep government from over regulating everything and a good, quality product will be produced. The key word in this is QUALITY—which means both the Supplier and Buyer are satisfied—QUALITY ACHIEVED!!!

    When I talk about OVER-REGULATING I mean over inspection by TOO many Government inspectors that know little about the product, just what they read and are there simply to fill a slot of employment for the GOVERNMENT—-I say —TOO MUCH INSPECTION. This slows work, drains enthusiasm and is a general drag on standard work practices.

    BTW–Snell and Otto–CW is correct and I think you 2 are #1–either young and very inexperienced or #2 Old and entrenched in lies that you can’t open your eyes and see. “In the last days God will send a spirit of Stupor to those non-believers”—— I rest my case!!!!

  2. @W.Snell
    Thanks for visiting us. We need someone with your intellectual prowess to lead us knuckle-dragging Neanderthals into the 21st century. Would you please commit to helping us?

  3. Insider:

    Your readers are a HOOT! More fringe than a buckskin jacket! Tea Party? No….The new Know Nothings! But don’t worry guys….the Republic will survive despite your inanity.

  4. So according to CW, “IF this SENATE plan passes it will be NO LESS DEVASTATING than Chamberlain’s Munich Agreement in 1938, conceding the Sudetenland region of Czechoslovakia to Germany. Any historian knows that GAVE HITLER EUROPE on a silver platter.”

    Oh of course – obviously.
    These pearls of wisdom would be hilarious if they weren’t so insulting.

    Tell you what CW, why don’t you try to lumber out of your barca-lounger and go try telling a World War-2 vet or someone whose family died in a concentration camp or at Pearl Harbor or on the Bataan Death March how taking steps to avoid national default is supposedly “no less devastating” than the steps that helped initiate World War-2. You couldn’t sound more utterly ridiculous if you tried.

    You know I’ve got relatives buried in Europe where they fell fighting to preserve your freedom to mouth off and sound like a complete ass. You should visit D.C. some time and visit Arlington Cemetery. Take a good look around there, and maybe consider putting your freedom of speech to more productive use in the future.

  5. I CANNOT BELIEVE HOW KBH CAN ABANDON THE WILL OF HER CONSTITUENTS !
    She, of course is a lame duck, if we can believe her, when she says she is not going to run, again. If she decides to change her mind, I hope she runs as a Dem. We positively have to dump the RINOs in 2012 and that includes Texas House Speaker Straus, along with Angie Chen Button and anyone else that supports those weasels.

  6. Stop the Discretionary Spending on the ILLEGAL IMMIGRANT invaders.

    Notably the gargantuan problem with illegal immigration, both illegal and illegal is CHAIN MIGRATION. It stems from the initial legitimized individual who attains citizenship can then sponsor family members. Family consists of Wife or Husband, Child under 21and unmarried all all have immediate admittance into the US. A US Citizen can also sponsor a son or daughter who is 21 years old or over, a married son or daughter of any age, and a brother or sister, who falls into the DERIVATIVE category. The derivative classification has a waiting period of many years as it takes to process. The sponsors will need to demonstrate adequate income or assets to support the intending immigrant, and accept legal responsibility for financially supporting their family member, by completing and signing a document called an Affidavit of Support. Sponsoring these family members is all well intentioned and good, but the main issue comes when the sponsor, who must a sign an affidavit of financial support, intentionally or for whatever reason, fails to honor his commitment.

    This part of immigration law, is hardly ever enforced so the recipients, have little choice but to apply for welfare assistance from the State and municipal government. The bottom line for any mass amnesty or as recorded Immigration Reform, gives those who are naturalized the right to petition (Form I-130 Petition for alien Relative) for their whole family, to legally enter America. But hundreds of thousands these petitions millions are processed and this has become an escalation of CHAIN MIGRATION, since the 1986. After the Hart/ Celler Act of 1965 when the Bracero Program was disbanded, the incentives and effects of chain migration perpetuated volume illegal migrants and immigration to the United States. In America the term ‘chain migration’ term to enlighten why legal immigration has quadrupled in replicating levels throughout the 1960s. As such, ‘chain migration’ is branded as one of the principal causes of the United States’ current immigrant population explosion.

    NumbersUSA, a a million plus organization that lobbies Congress for lower levels of immigration, states that, “one of the chief culprits in America’s current record-breaking population boom and all the attendant sprawl, congestion, school overcrowding, health care deterioration, and other impacts that reduce American’s quality of life. NumbersUSA cites the tradition of chain migration to America as a main cause for creating incentives for undocumented immigration.

    NumbersUSA, FAIR, and other groups are working to change immigration law to limit chain migration laws. NumbersUSA cites a specific bill it supports. “On Feb. 4, 2009, Rep. Phil Gingrey (R-GA) introduced the Nuclear Family Priority Act (H.R. 878). The bill would eliminate the extended family visa categories (e.g., married sons and daughters of citizens, etc.), thus ending “chain migration” as optional by the bi-partisan Barbara Jordan Commission in 1997.

    Today, passage of the Dream Act is cause for worry or any kind of mass Immigration Reform, would jeopardize the minimum of entrances to the US, through CHAIN MIGRATION. One point to this quandary is America has a major deficit problem, that has risen to new heights of $14.5 Trillion dollars under President obama’s signature hand. Simply put, we cannot afford to be the breadwinner for the rest of the world anymore. If we haven’t the cash anymore to pay the Chinese Investors and others, how can we afford an Amnesty estimated to cost $2.6 Trillion dollars? Never mind the original giant Amnesty of the 1986 Immigration Control and reform Act, cost only 76 Billion dollars. This is just a projection of the Census Bureau’s 11 million illegal aliens who have homesteaded here. But most activist organizations are of the opinion, there are more than 20 million living illegally in the US, while 8 million plus foreigners have employment.

    In this dragging recession how can Democrats, even discuss such an issue? Have the liberal progressives lost their minds, when there are 13 million American out of a job? It’s too incomprehensible, to even conceive such an awful situation for the lower income workers having to compete with this new source of potential hires? The majority of illegal aliens today are-ECONOMIC; they are here for their share of discretionary spending at Federal, State or Municipal level.

    One of the largest costs that would certainly make a difference is cutting benefits to illegal aliens. $113 Billion dollars, from the Federal government, that is not counting State, County and community for these hundreds of welfare and public services. Few know the amount of money paid out to parents of a child that receives an immediate birthright citizenship. Each child receives entitlements of what US citizens get, even though the parents are illegal.

    EACH YEAR 300.000 PLUS BABIES ARE SMUGGLED ANNUALLY INTO AMERICA IN THE MOTHERS WOMB, TO GAIN THE SPECIAL PRIVILEGE OF A MISINTERPRETED LAW; THE 14TH AMENDMENT. Once here and the parents are allowed to stay, the–ECONOMIC–family can then collect from taxpayers. So what does these entitlements consist of to the taxpayer? For a start cash payments of around $600.00 according to the State, that can double, triple for ever baby born. Food stamps, Medicaid Wicca (WIC) is a nutrition program for women, infants and children), (TANF) Temporary Assistance for Needy Families and Low Income housing. The most disturbing effect of this particular issue, that other family member can join those already here and hid away in their government backed homes.

    As thousands of people join the TEA PARTY, it is obvious that they have the right avenue towards building a better tomorrow. Their ticket to the 2012 elections is less government, less taxes (A fair taxing system, without loopholes for everybody) and reducing Illegal Immigration to a real trickle. When states like Arizona cannot rely on the US government, to construct the—REAL FENCE—at the border, then it has been forced by huge entitlement programs for foreign nationals crossing our sovereign perimeter to build another 78 miles of the fence through public and commercial donations. States are waking up as the look at their dwindling amounts of money in their treasuries? California, the first Sanctuary State that’s Liberal Congress, gives away freely benefits to millions of illegal alien homes. That’s why they are trying to climb out of a giant financial hole of $26 Billion dollars. ALABAMA, GEORGIA, ARIZONA are doing the right thing for their legal population, by enacting policing laws. Many states looking on are now supporting these restriction issues, because both political parties have ignored the laws to aid taxpayers. These new laws are–WORKING– because thousands, maybe hundreds of thousands are deserting these–zero tolerant–States and rushing of to California, Nevada and other refuge States.

    Insist you’re Representative in Washington, that they rescind any Immigration reform bills, Sanctuary Cities and state, the Dream Act and anything that has the rotten stench of AMNESTY. Liberals and open border brain-dead individuals, always refer to every foreign aliens, as “Immigrants’” tying everybody together in one population. No matter your country of origin, whether Hispanic, European, Asian or the Pacific Rim, if you come here legally, there should be no fear of the E-Verify and Secure Communities. TO REPEAT ILLEGAL ALIENS ARE NOT IMMIGRANTS. THEY ARE ILLEGAL AND ENTERED A SOVEREIGN COUNTRY WITHOUT PERMISSION. LEGAL HIGHLY SKILLED WORKERS SHOULD HAVE ACCESS TO PRIVILEGED VISAS, BUT WE MUST REMOVE THROUGH WHATEVER MEANS POSSIBLE TO DEPORT ILLEGAL Currently, illegal aliens are not only stealing jobs (should be a felony) from less schooled citizens, but residents and even students during the seasonable recess. NATIONALS. This is a very distasteful situation but birthright citizens and legal non-citizen individuals have a right to be employed over foreign nationals.

    This is a patriotic chance to help your fellow jobless countryman by Calling House Leadership NOW Call the Capitol Switchboard at 202-224-3121

  7. Dear Congressional Representatives:

    Read our lips. No new taxes period! Stop the spending now!

  8. Obama; If you need some help cutting the deficit, just give me a call. . . We’ll start with paying people who don’t even belong here, like babrack obama.and the other ILLEGAL aliens.

  9. The 3 RETREAD LIE CAN’T members of the GANG:
    Mike Crapo, Tom Coburn and Saxby Chambliss.
    Mike Crapo:
    Due to an unavoidable scheduling conflict regarding his work on the nation’s debt and deficit crisis, Senator Mike Crapo is regrettably cancelling his iTownhall forum scheduled for tonight, July 13th, at 7:00 p.m. Mountain Time/6:00 p.m. Pacific Time. Crapo said the town hall meeting will be rescheduled at a time in the near future.(Remember the Democrats canceling townhall meetings to avoid their constitutes views on health care ?)
    This should be NO SURPRISE SINCE this GOES COMPLETELY against his answers when asked on project vote SMART.
    Tom Coburn: Once again Tom Coburn joins his “friend” Mike Crapo in selling America down the tubes.
    Remember the START TREATY?
    Thad Cochran, MS
    Bob Corker, TN
    Mike Crapo, ID
    Tom Coburn, OK
    Lamar Alexander, TN
    Johnny Isakson, GA
    ALL the above voted for Obama’s treaty.
    To be honest at one time I though Tom Coburn was a REAL CHRISTIAN CONSERVATIVE in the last 3 years he has failed the test just too many times.
    Saxby Chambliss.:
    At least he is “honest about raising taxes”.
    http://www.redstate.com/erick/2011/04/18/saxby-chambliss-says-senate-republicans-will-support-tax-increases/
    Notice Saxby was point man for Republicans wanting TAX INCREASES since 04/18/2011.

  10. “We’ve gone from a Gang of Six to a mob of 50,” exulted Sen. Joe Manchin (D-W. Va.)
    May this MOB of Fifty suffer the same FATE as the GANG of FOUR did:
    http://en.wikipedia.org/wiki/Gang_of_Four

    Any time a member of apolitican party refers to their involvement as GANG or MOB that is EXACTLY what they mean.
    BEWARE it’s coming.

  11. “I will support it. It is a fair compromise,” added Sen. Kay Bailey Hutchison (R-Tex.). “This is a way forward where we can do the work that we have come here to do.”
    KBH ready to go down in a blaze of befitting a WITCH…………………………..

  12. GOD help us………………………….OUR SENIOR or should that be Senile RETREAD LIAR CAN’T “minority”
    “leader?” “RICH” McConnell ( McConnell, Mitch (R-Ky) $3,072,514 (2004) $16,979,018 (2008) $13,906,504(gain) 453 (% of gain) $19,929,018 (2009 net worth) ) is collaborating with the DEMONS.

    IF this SENATE plan passes it will be NO LESS DEVASTATING than Chamberlain’s Munich Agreement in 1938, conceding the Sudetenland region of Czechoslovakia to Germany.
    Any historian knows that GAVE HITLER EUROPE on a silver platter.

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