Last week, in our analysis of the President's submission, we noted how the President's submission to the Super Committee nearly stabilizes debt, but not fully, this decade and how much more will be needed to actually put debt on a clear downward path.
We stated that:
With President Obama's deficit reduction plan now officially out, it's worth comparing the debt path under this plan to other debt paths. For the comparison graph below, we have thrown in CBO's August baseline (excluding the trigger included in the Budget Control Act), the Fiscal Commission, and CRFB's Realistic baseline.
With the release of President Obama's deficit reduction plan this morning, CRFB has put out a press release commenting on the proposal.
With President Obama's deficit reduction plan set to be released on Monday, we already have some idea of what will be in it: reductions in tax expenditures for wealthy individuals and corporations, changes to health programs, and other mandatory savings. We also now know what won't be included in the plan: Social Security reform.
Today, Vice President Joe Biden convened the first cabinet-level meeting as part of the Administration's "Campaign to Cut Waste." He also announced a new Medicaid initiative designed at saving $2 billion over five years. According to OMB Director Jack Lew:
Tonight, President Obama will address the nation at 9 PM EST about the current negotiations going on between him and Congress over how to raise the debt ceiling and begin to control rising federal debt. Let us hope this speech furthers the current impasse currently strangling Washington and helps lead towards a comprehensive and bipartisan deal. You can watch the address live at www.whitehouse.gov/live.
Yesterday while making comments about the Jobs and Competitiveness Council, President Obama made some remarks that qualified him to be the newest member of CRFB's Announcement Effect Club. Here's what caught our attention (from Politico):
Obama also sought Monday to link the deficit-cutting talks and the issue identified in polls by most Americas as their top concern: job creation.
As the bipartisan group of lawmakers being led by Vice President Biden continue to discuss the budget and ways to raise the debt ceiling, it seems the Vice President has gotten himself another fiscal policy-related task: the Campaign to Cut Waste.
The bicameral, bipartisan debt limit and deficit reduction negotiations chaired by Vice President Biden resumed today with the group’s fifth meeting since it first convened last month. The pace of the talks is expected to pick up next week with as many as three meetings.