ABC has word that the deal is still tentative, but here is the outline:
Debt ceiling increase of up to $2.8 trillion
Spending cuts of roughly $1 trillion
Instead of Harry Reidís bogus war savings, a commission will be appointed to recommend cuts totaling $1.8 trillion, thereby equaling the amount of the debt ceiling increase. Thatís certainly an improvement over the Reid plan if the other cuts actually happen. I have my doubts whether the Democrats will follow through or simply use what theyíve already agreed to to demagogue the issue some more.
So the bottom line is that both sides avoided their non-negotiables. No tax increases which the House GOP refused to consider and the debt limit is raised enough to take this off the table next year, which the President demanded. Our credit rating will still get downgraded somewhat but the chance of default, which was never much of a chance, goes to zero.
The real downside is that the pressure is now off the President for the rest of his term and we didnít make any real progress in addressing entitlements. None. Weíre still living in the leftís Michael Moore fantasy world where trillions in unfunded liabilities arenít really a problem. Maybe it really is going to take a major downgrade for these people to catch a clue.