Super committee failure sets up $7.1 trillion in deficit reduction

[ProSense]

CBPP: Why Doing Nothing Would Reduce Deficits by $7.1 Trillion

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What would happen, however, if Congress did not do any of those things? Deficits would be more than $7.1 trillion lower over the next 10 years, and the budget would be nearly balanced in 2021. The savings from such inaction would be:

• $3.3 trillion from letting temporary income and estate tax cuts enacted in 2001, 2003, 2009, and 2010 expire on schedule at the end of 2012 (presuming Congress also lets relief from the Alternative Minimum Tax expire, as noted below);
  
  
• $0.8 trillion from allowing other temporary tax cuts (the “extenders” that Congress has regularly extended on a “temporary” basis) expire on schedule;
  
  
• $0.3 trillion from letting cuts in Medicare physician reimbursements scheduled under current law (required under the Medicare Sustainable Growth Rate formula enacted in 1997, but which have been postponed since 2003) take effect;
  
  
• $0.7 trillion from letting the temporary increase in the exemption amount under the Alternative Minimum Tax expire, thereby returning the exemption to the level in effect in 2001;
  
  
• $1.2 trillion from letting the sequestration of spending required if the Joint Committee does not produce $1.2 trillion in deficit reduction take effect; and
  
  
• $0.9 trillion in lower interest payments on the debt as a result of the deficit reduction achieved from not extending these current policies.

If Republicans are serious about deficit reduction, they should sign on immediately.

[TheWraith]

1. While I agree, comparing $7.1 trillion and $1.4 trillion isn't quite accurate.

That $7.1 trillion number includes things which are slated to expire, such as the Bush tax cuts, which were part of the OMB projection which served as the 'floor" to that $1.4 trillion figure. In other words, it's really $7.1 trillion without a deal versus about $5.5 trillion.

[ProSense]

4. True

While I agree, comparing $7.1 trillion and $1.4 trillion isn't quite accurate.
That $7.1 trillion number includes things which are slated to expire, such as the Bush tax cuts, which were part of the OMB projection which served as the 'floor" to that $1.4 trillion figure. In other words, it's really $7.1 trillion without a deal versus about $5.5 trillion.

...because the expiration of the tax cuts weren't compromised away.

As long as that remains the case, it's a total $7.1 trillion.

That's the number to Republican try to avoid.

[teddy51]

2. "If Republicans are serious about deficit reduction", except we know that

they never have been. They went along with the Bush/Cheney expenditures, and never questioned them. They don't give a crap about cutting deficits, they just want Obama to fail.

[high density]

3. Don't worry, the GOP will continue finding ways to redistribute more money upward

before this takes effect.