By Marge Clark, BVM
December 07, 2012
Negotiations are moving slowly on means to avert Sequestration (known as the Fiscal Cliff). It seems it is up to Representative Boehner and the president to come to some agreeable compromise. Although there is a tremendous amount of speculation about what will be the final deal; there is far more misinformation based on assumptions.
What we have, from the White House and from Representative Boehner’s own statements, appears on this chart.
COMPARING GOP ALTERNATIVES TO SEQUESTRATION WITH PRESIDENT OBAMA’S PLAN
(ALL ARE OVER 10 YEARS)
|Category||GOP Plan||President’s Plan|
|Revenues||$800 billion **||$1.6 trillion
(Increase in both top marginal rates, as well as capital gains and dividends–$960 billion, additional unspecified taxes–$600 billion)
|Health Care savings||$600 billion||$300 billion in specific health entitlement savings|
|Non-Health Mandatory Programs||$300 billion||Unspecified savings (Agriculture excluded)
Unemployment Insurance–$30 billion (spending)
|Discretionary Programs *||$300 billion||$1.5 trillion cut through BCA,
$900 billion in non-defense
$600 billion in Pentagon
* Since establishment of the Budget Control Act (BCA) Discretionary Programs have already been cut by $1.5 trillion over the next 10 years. By 2017, non-defense discretionary spending will be at the level of 1962, with far fewer seniors and less wealth disparity.
** This is insufficient to offset even the cost of extending the tax cuts for the wealthiest 2% in our nation.
This chart will be adapted as more information becomes available. Keep an eye on it.