Government Shutdown And Potential Default: The Deal

By Chandrashekar (Chandra) Tamirisa, (On Twitter) @c_tamirisa

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Below is the outline of a deal between The White House (and the Democrats) and the Republicans:

Before October 17, 2013
1. Raise debt ceiling to $17.5 trillion or $800 billion above the current level of $16.7 trillion.
2. Pass a continuing resolution (CR) to open government until January 15, 2014 at Fiscal Year (FY) 2013 spending levels.
3. Delay enforcement of the individual mandate of the Affordable Care Act (ACA) to January 01, 2015.
4. Change ACA to cover all who cannot be covered by Medicaid.
5. Change the definition of full time employees for the purpose of employer coverage in the ACA to 40 hours/week.
6. Repeal the tax on medical devices.
7. Replace transitional reinsurance program for individual and small group markets in each state with an equivalent increase in premium payable by individuals. Do not require insurance coverage of contraceptives.
8. Require income verification for eligibility for subsidies. Eliminate subsidies for President, Vice President, Cabinet, Members of Congress and their staff.
9. Pool people on a national basis and not locally to create economies of scale to lower rates.
10. Cancel current policies non-compliant with the new law only after people successfully enroll in the exchanges.

Before January 15, 2014
11. Impose means-testing on Medicare recipients. Slow the growth of social security expenditures by indexing the benefit’s cost of living growth to chained consumer price index.
12. End sequester.
13. Pass federal budget for FY 2014.

After January 15, 2014
14. Open debate on comprehensive tax reform to a consumption/income tax hybrid.
15. Open debate on other issues of government reform such as immigration.


About Chandrashekar (Chandra) Tamirisa
This entry was posted in Economics, North America and Caribbean, Politics, Transformations LLC and tagged , , , . Bookmark the permalink.

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