Debt limit deal: Will the cuts be phony?

posted by
June 20, 2011
Cato Institute
by Chris Edwards  
Posted in Commentary

"Behind closed doors, congressional leaders and the White House are discussing budget savings to tie to the upcoming vote on the federal debt limit. Republicans have promised that spending cuts must be at least as large as the debt-increase amount. Thus, if the debt limit is increased by $2 trillion to get the government through the end of 2012, policymakers need to agree on $2 trillion in cuts, probably measured over 10 years. However, I'm getting very suspicious that party leaders will deliver phony 'cuts,' not actual terminations in programs or reductions in entitlements." (06/16/11)  


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