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TWO-STEP APPROACH TO
        HOLD PRESIDENT OBAMA ACCOUNTABLE
Emerging framework has three main features:
(1)!! cuts government spending more than it increases the debt limit;
(2)!! implements spending caps to restrain future spending;
(3)!! advances the cause of a Balanced Budget Amendment
Framework accomplishes this without tax hikes, which would
destroy jobs, while preventing a job-killing national default.

                          SPEAKER JOHN BOEHNER
NO TAX HIKES
‣ Same as House-passed bill, the framework
  includes no tax hikes.
‣ Requires baseline to be current law, effectively
  making it impossible for Joint Committee to
  increase taxes.
                     SPEAKER JOHN BOEHNER
CUTS THAT EXCEED THE DEBT HIKE
‣ Same as House-passed bill, framework includes spending cuts that
  exceed the amount of the increased debt authority granted to POTUS.
‣ Would cut & cap discretionary spending immediately, saving $917B over
  10 years (certified by CBO) & raise the debt ceiling by less – $900B – to
  approximately February.!
‣ Before debt ceiling can be raised, Congress and the president must enact
  spending cuts of a larger amount first.

                             SPEAKER JOHN BOEHNER
CAPS TO CONTROL FUTURE SPENDING
‣ As in House-passed bill, framework imposes spending caps that
 would set clear limits on future spending & serve as barrier
 against gov’t expansion while economy grows.!

‣ Failure to remain below these caps triggers automatic across-
 the-board cuts (“sequestration”).! Same mechanism used in
 1997 Balanced Budget Agreement.

                         SPEAKER JOHN BOEHNER
BALANCED BUDGET AMENDMENT
‣ Same as House-passed bill, framework requires both House & Senate to vote on a BBA
  after Oct. 1, 2011 but before the end of year.
‣ Similar to House-passed bill, framework authorizes POTUS to request second tranche of
  debt limit increase of $1.5T if:
  ‣ Joint Committee cuts spending by greater amount than the requested debt limit hike,
      OR
  ‣   A Balanced Budget Amendment is sent to the states.
‣ Creates incentive for previous opponents of a BBA to now support it.!

                                     SPEAKER JOHN BOEHNER
ENTITLEMENT REFORMS & SAVINGS!
‣ Same as House-passed bill, framework creates a 12-member Joint Committee
  required to report legislation by November 23, 2011 that would produce a
  proposal to reduce the deficit by at least $1.5T over 10 years.

‣ Each chamber would consider Joint Committee proposal on an up-or-down
  basis without any amendments by December 23, 2011.!

‣ If Joint Committee’s proposal is enacted OR if a Balanced Budget Amendment is
  sent to the states, POTUS would be authorized to request a debt limit increase of
  $1.5T.!

                               SPEAKER JOHN BOEHNER
ENTITLEMENT REFORMS & SAVINGS!
‣ Sets up a new sequestration process to cut spending across-the-board – and ensure that any debt limit
   increase is met with greater spending cuts – IF Joint Committee fails to achieve at least $1.2T in deficit
   reduction.!
‣ If this happens, POTUS may request up to $1.2T for a debt limit increase, and if granted, then across-the-
   board spending cuts would result that would equal the difference between $1.2T and the deficit reduction
   enacted as a result of Joint Committee.!
‣ Across-the-board spending cuts would apply to FYs 2013-2021, and apply to both mandatory &
   discretionary programs.!
‣ Total reductions would be equally split between defense and non-defense programs.! Across-the-board
   cuts would also apply to Medicare.! Other programs, including Social Security, Medicaid, veterans, and
   civil & military pay, would be exempt.
‣ Sequestration process is designed to guarantee that Congress acts on the Joint Committee’s legislation
   to cut spending.
                                          SPEAKER JOHN BOEHNER

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Boehner's Sequester Slideshow

  • 1. TWO-STEP APPROACH TO HOLD PRESIDENT OBAMA ACCOUNTABLE Emerging framework has three main features: (1)!! cuts government spending more than it increases the debt limit; (2)!! implements spending caps to restrain future spending; (3)!! advances the cause of a Balanced Budget Amendment Framework accomplishes this without tax hikes, which would destroy jobs, while preventing a job-killing national default. SPEAKER JOHN BOEHNER
  • 2. NO TAX HIKES ‣ Same as House-passed bill, the framework includes no tax hikes. ‣ Requires baseline to be current law, effectively making it impossible for Joint Committee to increase taxes. SPEAKER JOHN BOEHNER
  • 3. CUTS THAT EXCEED THE DEBT HIKE ‣ Same as House-passed bill, framework includes spending cuts that exceed the amount of the increased debt authority granted to POTUS. ‣ Would cut & cap discretionary spending immediately, saving $917B over 10 years (certified by CBO) & raise the debt ceiling by less – $900B – to approximately February.! ‣ Before debt ceiling can be raised, Congress and the president must enact spending cuts of a larger amount first. SPEAKER JOHN BOEHNER
  • 4. CAPS TO CONTROL FUTURE SPENDING ‣ As in House-passed bill, framework imposes spending caps that would set clear limits on future spending & serve as barrier against gov’t expansion while economy grows.! ‣ Failure to remain below these caps triggers automatic across- the-board cuts (“sequestration”).! Same mechanism used in 1997 Balanced Budget Agreement. SPEAKER JOHN BOEHNER
  • 5. BALANCED BUDGET AMENDMENT ‣ Same as House-passed bill, framework requires both House & Senate to vote on a BBA after Oct. 1, 2011 but before the end of year. ‣ Similar to House-passed bill, framework authorizes POTUS to request second tranche of debt limit increase of $1.5T if: ‣ Joint Committee cuts spending by greater amount than the requested debt limit hike, OR ‣ A Balanced Budget Amendment is sent to the states. ‣ Creates incentive for previous opponents of a BBA to now support it.! SPEAKER JOHN BOEHNER
  • 6. ENTITLEMENT REFORMS & SAVINGS! ‣ Same as House-passed bill, framework creates a 12-member Joint Committee required to report legislation by November 23, 2011 that would produce a proposal to reduce the deficit by at least $1.5T over 10 years. ‣ Each chamber would consider Joint Committee proposal on an up-or-down basis without any amendments by December 23, 2011.! ‣ If Joint Committee’s proposal is enacted OR if a Balanced Budget Amendment is sent to the states, POTUS would be authorized to request a debt limit increase of $1.5T.! SPEAKER JOHN BOEHNER
  • 7. ENTITLEMENT REFORMS & SAVINGS! ‣ Sets up a new sequestration process to cut spending across-the-board – and ensure that any debt limit increase is met with greater spending cuts – IF Joint Committee fails to achieve at least $1.2T in deficit reduction.! ‣ If this happens, POTUS may request up to $1.2T for a debt limit increase, and if granted, then across-the- board spending cuts would result that would equal the difference between $1.2T and the deficit reduction enacted as a result of Joint Committee.! ‣ Across-the-board spending cuts would apply to FYs 2013-2021, and apply to both mandatory & discretionary programs.! ‣ Total reductions would be equally split between defense and non-defense programs.! Across-the-board cuts would also apply to Medicare.! Other programs, including Social Security, Medicaid, veterans, and civil & military pay, would be exempt. ‣ Sequestration process is designed to guarantee that Congress acts on the Joint Committee’s legislation to cut spending. SPEAKER JOHN BOEHNER