By Philip Bunnell
Senate Majority Leader Harry Reid (D-Nev.) and Sen. Charles Schumer (D-N.Y.) on Monday touted a new plan to raise the debt ceiling that they claim meets the standards laid out by both parties.
The proposal will cut $2.7 trillion in spending, $1 trillion of which is drawn from winding down the wars in Iraq and Afghanistan, while sparing entitlement programs such as Medicare and Medicaid. The plan also features no increase in revenue, which had been the center of heated debate between Democrats and Republicans.
“It’s a tough choice,” Schumer said of not including revenue increases, “but for Democrats we get an increase in the debt ceiling through 2012 and we succeed in preventing any benefit cuts to Medicare, Medicaid, and Social Security.”
Both Schumer and Reid stressed that revenue increases are necessary and that they will pursue them. However, in the interest of avoiding default, no tax increases were included.
“All the Republicans have to do is say ‘yes’,” Reid told reporters.
The plan will include another key GOP interest, Reid noted.
“The amount of the cuts meets the amount of debt ceiling increases,” said Reid. “They wanted a one for one, that’s what we give them.”
Both Senators were highly critical of the “extremists” in the Republican party who they accused of hijacking the debate. The Republicans, Reid said, are being “driven by the radical, right-wing that is so in tune with the Tea Party.”
The two Democrats also rejected the notion that Speaker of the House John Boehner’s (R-OH) short term plan was a viable option.
“A short term extension would not provide the certainty the markets are looking for, and risks the same dire economic consequences that would be triggered by default itself,” warned Reid.
Schumer accused the GOP of waffling on the issue.
“Even Republicans rejected a short term increase in the debt ceiling as recently as last month,” observed Schumer, “… now Republicans have apparently flip-flopped on this point, but a short term deal is still an non-starter in the Senate.”