I’m old enough to remember when a budget deal meant that Democrats got tax hikes and Republicans got spending cuts. But, apparently, a budget deal now means both sides get spending hikes:
The measure under discussion would suspend the current $18.1 trillion debt limit through March 2017.
The budget side of the deal is aimed at undoing automatic spending cuts which are a byproduct of a 2011 budget and debt deal and the failure of Washington to subsequently tackle the government’s fiscal woes. GOP defense hawks are a driving force, intent on reversing the automatic cuts and getting more money for the military.
The focus is on setting a new overall spending limit for agencies whose operating budgets are set by Congress each year. It will be up to the House and Senate Appropriations committees to produce a detailed omnibus spending bill by the Dec. 11 deadline.
The tentative pact anticipates designating further increases for the Pentagon as emergency war funds that can be made exempt from budget caps. Offsetting spending cuts that would pay for domestic spending increases included curbs on certain Medicare payments for outpatient services provided by hospitals and an extension of a 2-percentage-point cut in Medicare payments to doctors through the end of a 10-year budget.
There’s also a drawdown from the Strategic Petroleum Reserve, reforms to crop insurance, and savings reaped from a Justice Department funds for crime victims and involving assets seized from criminals.
Negotiators looked to address two other key issues as well: a shortfall looming next year in Social Security payments to the disabled and a large increase for many retirees in Medicare premiums and deductibles for doctors’ visits and other outpatient care.
There’s a few good things here: putting the debt limit past the election and cutting farm subsidies. But it also contains some head-scratchers: increases in defense spending, increases in domestic spending and drawing down the strategic petroleum reserve at a time when oil is incredibly cheap.
Paul Ryan has made some noises against it, but this sounds more like he wants to get us back onto a normal budget process as opposed to the “budget by crisis” method we’ve been using for the last few years. Ted Cruz and Rand Paul have hinted at a filibuster but that’s not going to happen with a budget bill. Absent a massive revolt, it looks like this is what we’ve got.
Update: Looks like the deal passed the house, with mostly Democratic support.