Issue Position: Budget Cuts

Issue Position

The bipartisan deal struck last year to allow an increase in the debt limit called for automatic cuts only if Congress could not agree on another way to achieve the required amount of deficit reduction. While the deal postponed the debt-limit crisis until later this year, I predict Congress will agree to a plan to avoid the automatic cuts. The enforcement mechanism will trigger spending reductions beginning in 2013--split 50/50 between domestic and defense spending. Enforcement protects Social Security, Medicare beneficiaries, and low-income programs from any cuts. Some predict a budget meltdown. However, I am optimistic the enforcement mechanism is strong enough to bring all sides together to agree on a plan. If Congress fails to act, the deal would automatically add nearly $500 billion in defense cuts on top of cuts already made, and at the same time, would cut critical programs like infrastructure and education. That is an outcome that is unacceptable to those on both sides of the aisle and should create sufficient incentive for a bipartisan agreement. The best result, in my view, is an agreement that is balanced, bipartisan, and does not place the burden of deficit reduction disproportionately on working families.

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