Would certainly be the final nail in the economy’s coffin.
(CNSNews.com) — Democrats have offered a deal — after rejecting a GOP offer earlier this week — that would cut $1 trillion in projected spending over the next 10 years and raise taxes by $1 trillion over 10 years, according to documents leaked to Talking Points Memo.
Democrats are proposing to match any spending cuts with new tax increases, attempting to find $1 trillion in savings to match $1 trillion in new taxes.
The Democrats’ plan calls for cutting $400 billion from Medicare and Medicaid and another $400 billion from a combination of defense and non-defense programs in equal amounts.
It also calls for an additional $200 billion in cuts from unspecified “provisions currently being discussed by JSC.” JSC is the initials of the Joint Select Committee, the formal name of the Super Committee.
The Super Committee is charged with writing legislation to reduce deficit spending by $1.5 trillion over the next decade. If Congress fails to enact legislation to do that, $1.2 trillion in automatic budget cuts will take effect. Those cuts would be split 50-50 between domestic and defense spending.