President announces Debt-Limit Deal

THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
July 31, 2011

REMARKS BY THE PRESIDENT
James S. Brady Press Briefing Room
8:40 P.M. EDT

THE PRESIDENT: Good evening. There are still some very important votes to be taken by members of Congress, but I want to announce that the leaders of both parties, in both chambers, have reached an agreement that will reduce the deficit and avoid default -- a default that would have had a devastating effect on our economy.

The first part of this agreement will cut about $1 trillion in spending over the next 10 years -- cuts that both parties had agreed to early on in this process. The result would be the lowest level of annual domestic spending since Dwight Eisenhower was President -- but at a level that still allows us to make job-creating investments in things like education and research. We also made sure that these cuts wouldn’t happen so abruptly that they’d be a drag on a fragile economy.

Now, I've said from the beginning that the ultimate solution to our deficit problem must be balanced. Despite what some Republicans have argued, I believe that we have to ask the wealthiest Americans and biggest corporations to pay their fair share by giving up tax breaks and special deductions. Despite what some in my own party have argued, I believe that we need to make some modest adjustments to programs like Medicare to ensure that they’re still around for future generations.

That's why the second part of this agreement is so important. It establishes a bipartisan committee of Congress to report back by November with a proposal to further reduce the deficit, which will then be put before the entire Congress for an up or down vote. In this stage, everything will be on the table. To hold us all accountable for making these reforms, tough cuts that both parties would find objectionable would automatically go into effect if we don’t act. And over the next few months, I’ll continue to make a detailed case to these lawmakers about why I believe a balanced approach is necessary to finish the job.

Now, is this the deal I would have preferred? No. I believe that we could have made the tough choices required -- on entitlement reform and tax reform -- right now, rather than through a special congressional committee process. But this compromise does make a serious down payment on the deficit reduction we need, and gives each party a strong incentive to get a balanced plan done before the end of the year.

Most importantly, it will allow us to avoid default and end the crisis that Washington imposed on the rest of America. It ensures also that we will not face this same kind of crisis again in six months, or eight months, or 12 months. And it will begin to lift the cloud of debt and the cloud of uncertainty that hangs over our economy.

Now, this process has been messy; it’s taken far too long. I've been concerned about the impact that it has had on business confidence and consumer confidence and the economy as a whole over the last month. Nevertheless, ultimately, the leaders of both parties have found their way toward compromise. And I want to thank them for that.

Most of all, I want to thank the American people. It’s been your voices -- your letters, your emails, your tweets, your phone calls -- that have compelled Washington to act in the final days. And the American people's voice is a very, very powerful thing.

We’re not done yet. I want to urge members of both parties to do the right thing and support this deal with your votes over the next few days. It will allow us to avoid default. It will allow us to pay our bills. It will allow us to start reducing our deficit in a responsible way. And it will allow us to turn to the very important business of doing everything we can to create jobs, boost wages, and grow this economy faster than it's currently growing.

That’s what the American people sent us here to do, and that’s what we should be devoting all of our time to accomplishing in the months ahead.

Thank you very much, everybody.

END 8:44 P.M. EDT

Pierluisi es elegido al Comité de Etica

La portavoz de la minoría lo recomendó y el pleno de la Cámara baja aprobó el nombramiento

WASHINGTON – Por recomendación del liderazgo demócrata, la Cámara baja federal aprobó el nombramiento del comisionado residente Pedro Pierluisi como miembro del Comité de Etica.
En esa comisión sólo hay cinco republicanos y cinco demócratas.

“El nombramiento del congresista Pierluisi es un reflejo del respeto que se ha ganado por su duro trabajo, sólido carácter y dedicación a la honestidad, dignidad y el estado de derecho”, indicó la portavoz de la minoría demócrata, Nancy Pelosi.

Pierluisi es el primer comisionado residente o delegado de territorio que es miembro de ese exclusiva comisión legislativa que regula la conducta de los miembros y funcionarios de la Cámara de Representantes federal.

Shooting of Congresswoman Gabrielle Giffords of Arizona

Jan 9th, 2010
Lakeland, Fl.

The National Committee and members of the Republican National Hispanic Assembly (RNHA) are saddened by the shooting today of Arizona Congresswoman Gabrielle Giffords. RNHA National Chairman Alci Maldonado released the following statement: "The RNHA family is stunned and saddened by the shooting today of Congresswoman Gabrielle Giffords of Arizona. This violence is shocking and distressing and there is no place for this in our free society. We express our opinions and debate peacefully in this country. A tragedy like this unites us all as Americans irrespective of political party affiliation. We lift up Congresswoman Giffords and her family in our thoughts and prayers. "

# # #

Congressman Pierluisi appointed as DCCC National Chair of Community Mobilization

The Democratic Congressional Campaign Committee (DCCC) is the official campaign arm of the Democrats in the House of Representatives.

The DCCC National Chairs, formerly called Vice Chairs, will work closely with DCCC Chairman Israel, House Leadership, and the Caucus on planning and executing the strategies that will make the Republican Majority the shortest in history.

“Representatives Joe Crowley, Debbie Wasserman Schultz, Allyson Schwartz, Keith Ellison, and Pedro Pierluisi have the perfect combination of battle-tested experience, political know-how and leadership savvy to make this the shortest Republican majority in history,” said DCCC Chairman Steve Israel. “I’m thrilled they will be working with us this cycle to ensure our Members and candidates have the tools they need to win.”

DCCC recruiting for the 2011-2012 cycle is off to a fast and aggressive start: Chairman Israel has already begun recruiting calls and meeting with potential candidates. The National Chairs will join the Recruiting Committee’s first meeting this Thursday.


Pedro Pierluisi, National Chair of Community Mobilization.

Pedro Pierluisi, Resident Commissioner of Puerto Rico, will serve as National Chair of Community Mobilization. Pierluisi is responsible for ensuring key Democratic constituencies are organized, energized, and well-equipped to join our aggressive voter contact effort.

“Voter contact is critical to the DCCC’s effort to win the House. Congressman Pierluisi is a leader who will organize, inspire, and motivate voters, ensuring more voices join the political process this cycle,” said DCCC Chairman Steve Israel. “I’m pleased that Pedro is joining our DCCC team.”

Congressman Pierluisi said,

"Democrats can count on me to make an all-out effort to energize voters around the country so that we can reclaim the majority in 2012. Using all available means, I intend to mobilize the millions of Americans who share our Party's goal of creating a stronger, fairer, and more prosperous nation. I am confident we will prevail."

CBO’s Preliminary Analysis of H.R. 2, the Repealing the Job-Killing Health Care Law Act

CBO’s Preliminary Analysis of H.R. 2, the Repealing the Job-Killing Health Care Law Act


The House of Representatives is planning to consider a bill (H.R. 2) to repeal the major health care legislation enacted last March—that is, the Patient Protection and Affordable Care Act (PPACA) and the provisions of the Health Care and Education Reconciliation Act of 2010 that are related to health care. CBO has not yet developed a detailed estimate of the budgetary impact of repealing that legislation, although it is working with the staff of the Joint Committee on Taxation (JCT) to complete such an estimate in the near future. Because Congressional deliberations on H.R. 2 are beginning, CBO today issued a less-detailed preliminary analysis of that legislation.

Because CBO and JCT estimated that the March 2010 health care legislation would reduce budget deficits over the 2010–2019 period and in subsequent years, we expect that repealing that legislation would increase budget deficits. The resulting increase in deficits projected for fiscal years 2012 through 2019 is likely to be similar in size to—but not exactly the same as—the reduction in deficits that was originally estimated to result from the enacted legislation.

The forthcoming detailed estimate will reflect a number of developments that have occurred since CBO and JCT produced the cost estimate for the March 2010 legislation, including changes in the economic outlook, technical revisions to CBO’s projections of program spending, the initial steps that have been taken to implement the new laws, and enactment of legislation that modified those laws. Those developments will probably not have a major effect on the overall budgetary impact of repealing the legislation. In addition, CBO has seen no evidence to date that the steps that will be taken to implement the March legislation—or the ways in which participants in the health care and health financing systems will respond to that legislation—will yield overall budgetary effects that differ significantly from the ones that CBO and JCT projected earlier. We cannot predict whether the various changes that will be incorporated in the detailed estimate will increase or decrease the estimated impact of H.R. 2 on federal deficits through 2019.

The estimate for H.R. 2 will differ in one significant way from the estimate for the enacted health care legislation. The original estimate covered the period from 2010 through 2019, the period used for Congressional budget enforcement procedures when the legislation was being considered; new estimates will span the period from 2012 to 2021.

Today’s letter describes—in broad terms and on a preliminary basis—CBO’s assessment of the effects that repealing PPACA and the relevant provisions of the Reconciliation Act would have on federal budget deficits, the federal government’s budgetary commitment to health care, the number of people with health insurance, and health insurance premiums in the private market. (Repealing the provisions of that legislation would also have a variety of other effects on the health care and health insurance systems that this letter, like previous CBO cost estimates, does not address.)

Impact on the Federal Budget in the First Decade

As a result of changes in direct spending and revenues, CBO expects that enacting H.R. 2 would probably increase federal budget deficits over the 2012–2019 period by a total of roughly $145 billion (on the basis of the original estimate), plus or minus the effects of technical and economic changes that CBO and JCT will include in the forthcoming estimate. Adding two more years (through 2021) brings the projected increase in deficits to something in the vicinity of $230 billion, plus or minus the effects of technical and economic changes.

Those projections do not include any potential savings in discretionary spending, which is governed by annual appropriation acts. By CBO’s estimates, repeal of the health care legislation would probably reduce the appropriations needed by the Internal Revenue Service by between $5 billion and $10 billion over 10 years. Similar savings would accrue to the Department of Health and Human Services.

There is no clear basis for projecting other effects of H.R. 2 on discretionary spending. PPACA contained a number of authorizations for future appropriations, which, if left in place, might or might not result in additional appropriations. For example, most of the authorizations were for activities that were already being carried out under current law or that were previously authorized and that PPACA authorized for future years. Thus, repeal of the PPACA authorizations might or might not result in discretionary savings associated with those authorizations.

Impact on the Federal Budget Beyond the First 10 Years

CBO estimates that enacting H.R. 2 would increase federal deficits in the decade after 2019 by an amount that is in a broad range around one-half percent of GDP, plus or minus the effects of technical and economic changes that CBO and JCT will include in the forthcoming estimate. For the decade beginning after 2021, the effect of H.R. 2 on federal deficits as a share of the economy would probably be somewhat larger.

As with all of CBO’s cost estimates, these estimates—both for the first 10 years and beyond—reflect an assumption that the provisions of current law would otherwise remain unchanged throughout the projection period and that the legislation being considered would be enacted and implemented in its current form. CBO’s responsibility to the Congress is to estimate the effects of proposals as written and not to forecast future legislation. However, current law now includes a number of policies that might be difficult to sustain over a long period of time. If those policies or other key aspects of the original legislation would have subsequently been modified or implemented incompletely, then the budgetary effects of repealing PPACA and the relevant provisions of the Reconciliation Act could be quite different—but CBO cannot forecast future changes in law or assume such changes in its estimates.

Effects on the Federal Budgetary Commitment to Health Care

CBO uses the term “federal budgetary commitment to health care” to describe the sum of net federal outlays for health programs and tax preferences for health care. H.R. 2 would roughly reverse the outcome projected for the original legislation, diminishing the federal budgetary commitment to health care over the next decade and increasing it in subsequent years.

Effects on the Number of People with Health Insurance

Under H.R. 2, about 32 million fewer nonelderly people would have health insurance in 2019, leaving a total of about 54 million nonelderly people uninsured. The share of legal nonelderly residents with insurance coverage in 2019 would be about 83 percent, compared with a projected share of 94 percent under current law (and 83 percent currently).

Effects on Health Insurance Premiums

If H.R. 2 was enacted, premiums for health insurance in the individual market would be somewhat lower than under current law, mostly because the average insurance policy in this market would cover a smaller share of enrollees’ costs for health care and a slightly narrower range of benefits. Although premiums in the individual market would be lower, on average, under H.R. 2 than under current law, many people would end up paying more for health insurance—because under current law, the majority of enrollees purchasing coverage in that market would receive subsidies via the insurance exchanges, and H.R. 2 would eliminate those subsidies.

Premiums for employment-based coverage obtained through large employers would be slightly higher under H.R. 2 than under current law. Premiums for employment-based coverage obtained through small employers might be slightly higher or slightly lower (reflecting uncertainty about the impact of the enacted legislation on premiums in that market).


Letter to Speaker of House Hon. John Boehner

Originally posted on CBO Director's Blog.