Jan 1, 2013

Senate fiscal cliff deal in numbers

Let's take a broad look at what 40 Senate Republicans voted for last night to avert the fiscal cliff deficit reduction they passed over the last few years.
Biden-McConnell Plan:
$620 billion revenue - mostly from tax increases on $400,000+ incomes
$30 billion in new spending - unemployment extension not offset
$15 billion in cuts - mostly military and healthcare tweaks
Postpones automatic sequester cuts of $1.5 trillion for 2 months 
Those sure do seem like small numbers. To see just how small, consider that they're spread out over 10 years, then compare them to 1 year of the budget itself.
$3.8 trillion total spending
$2.9 trillion total revenue
But let's compare apples to apples: 1 year of the budget to 1 year of the deal.
$3.8 trillion spending to start
$3 billion new spending
$1.5 billion cuts
end with ... wait for it ... $3.8 trillion spending
$2.9 trillion revenue to start
$62 billion new revenue (assuming economic growth doesn't slow...)
end with ... wait for it ... $2.9 trillion revenue
In broad terms of the budget, absolutely nothing was accomplished either in revenue or spending. Next, let's take a look at the previous proposals to really judge where we ended up.
Geithner Plan
$1.6 trillion new revenue - increase taxes, eliminate deductions over $250k income
$50 billion new spending
$350 billion cuts

Boehner counteroffer
$800 billion new revenue - eliminate deductions over $250k income
$1.2 trillion cuts

Obama outline
$1.2 trillion new revenue - increase taxes, eliminate deductions over $400k income
$80 billion new spending
$1.2 trillion cuts

Boehner "Plan B"
$1 trillion new revenue - increase taxes, eliminate deductions over $1M income
$1 trillion cuts
So instead of $350 billion to $1.2 trillion in cuts, we got $15 billion. Instead of $800 billion to $1.6 trillion in new revenue, we got $620 billion. Over 10 years.

This is not compromise, it's surrender.

No comments: