Automatic spending cuts.
That’s the threat facing lawmakers if the special debt committee fails to propose at least $1.2 trillion in deficit cuts, or if Congress rejects its proposals.
Of course, many people think the process will fail.
After all, many Republicans are still unwilling to vote through tax increases, and many Democrats are unwilling to cut spending on entitlement programs without revenue hikes.
Sure lawmakers could defy expectations. But if they don’t, many assume the federal budget will be cut across the board and automatically.
Well, that’s not quite right. It’s definitely not across the board, and it may not be automatic.
Taxes and debt: Left and right dare to agree
First off, the Budget Control Act, which set up the so-called super committee, exempts programs that benefit low-income Americans, such as Medicaid, Social Security and food stamps. It also puts a 2% cap on any Medicare cuts.
For the rest of the budget,
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