Although I don't usually participate in these discussions on the message board, I thought this letter from MOAA put everything into perspective without all of the spin that comes from other media sources. The most important sentence I took from this entire letter was this "Although military retired pay, Social Security, and Medicare beneficiaries are protected from these cuts it could leave TRICARE and Medicare providers extremely vulnerable." - Jim

Debt Deal: What You Need to Know

After months of tense negotiations Congress agreed to a last
minute debt reduction deal and raised the debt ceiling - a
Congressional limit on government borrowing - just in time to
meet the Treasury Department's August 2nd deadline to avoid a
potential government default.

The agreement, signed by the President on Tuesday, sets a course
for future reductions in federal spending. But the compromise is
remarkably short on details and relies largely on the budget
cutting recommendations of a soon to be formed Congressional
"Super Committee." In many ways the deal reflects the inability
of Congress to come to terms with spending cuts.

Here's what we know about the deal:

Enacts $900 billion in federal spending cuts over 10 years
Cuts include $350 billion in savings from the base defense budget
already agreed upon earlier this year
Authorizes the President to increase the debt limit by at least
$2.1 trillion, eliminating the need for further increases until
2013
Establishes a Congressional bipartisan Joint Committee, often
referred to as the "Super Committee," tasked with identifying an
additional $1.5 trillion in debt reduction, including
discretionary (e.g., pay raises, procurement, etc.) and direct
(e.g., Social Security, TFL) spending; the Committee will also
consider tax revenue measures
Requires $1.2 trillion in cuts if the "Super Committee" fails to
reach an agreement, or Congress fails to pass the committee's
recommendations by December 23 Cuts would be divided between
defense and non-defense defense spending
Ensures a vote on a balanced budget constitutional amendment by
December 2011

Now that the deal is done all eyes will turn to the Congressional
"Super Committee" made up of 12 members of Congress, six from
each chamber, and six from each party. Their debt reduction
recommendations are due November 23, 2011. Congress is required
to vote on their recommendations without amendment by December
23, 2011.

The Super Committee is authorized to look at both discretionary
and direct (mandatory) spending meaning that military retirement,
TFL, Social Security, etc., are on the table for cutting.

However, if the Committee cannot reach an agreement on how to cut
an additional $1.5 trillion from the debt or if their recommended
cuts fail to be adopted by Congress, an enforcement mechanism
(sequestration) will trigger automatic, draconian spending
reductions starting in 2013. The cuts would be split 50/50
between domestic and defense spending (defense spending cuts
would be about $50 billion per year). The severity of this
process is intended to force Congress to act and prioritize what
reductions should be made.

If sequestration is employed Social Security, Medicare
beneficiaries (but not providers), federal civil service
retirement, military retirement and low-income programs will be
exempt from mandatory cuts.

MOAA is especially concerned about the prospect of sequestration
if Congress fails to reach a $1.5 trillion deal by December 23.
These automatic cuts would rely heavily on defense spending
reductions. Although military retired pay, Social Security, and
Medicare beneficiaries are protected from these cuts it could
leave TRICARE and Medicare providers extremely vulnerable. The
magnitude of these cuts may prevent a "doc fix" this year which
would deeply hurt access to care.

And this is only the beginning of several years of successive
budget reductions. Both the right and the left are looking to
reduce defense spending and the quickest way there is cutting
manpower and compensation.

I'll believe that when I see it enacted into law Jim. Otherwise, they will cut the low hanging fruit... that being those who can least defend themselves. See link...

Might be smarmy economics as the "Debt Deal" didn't cut anything! It only reduced the amount of future increases in spending.

Bait and switch by the "535" and the "Organizer" in the White House!

Never trust a politician to tell the truth folks. You'll be disappointed every time!

Know how to tell it a politician is Lying? His mouth is moving!



Russ