Deficit Shrinking, Health Care Costs Slowing
New CBO projection shows plummeting deficit. NYT: "Since the recession ended four years ago, thefederal budget deficit has topped $1 trillion every year. But now the government’s annual deficit is shrinking far faster than anyone in Washington expected, and perhaps even faster than many economists think is advisable for the health of the economy ... the deficit for this fiscal year, which ends on Sept. 30, will fall to about $642 billion, or 4 percent of the nation’s annual economic output, about $200 billion lower than the agency estimated just three months ago."
CBO even projects slowdown in health care costs. WSJ: " In 2012, federal spending for Medicare for the elderly and Medicaid for the poor was about 5% below what CBO had projected in March 2010. CBO has been more reluctant than some other analysts to conclude that this is a lasting downshift in health care spending growth, but gradually it has concluded that some of the slowdown will persist."
"If this holds ... the deficit will have been cut by more than half over Obama's first five years" notes US News' Pat Garofalo.
W. Monthly's Ed Kilgore: "I must have missed the blaring MSM news coverage, and also the ticker-tape parade. But then I guess deficits are news only when they are going up."
...Yet Nothing Changes
Conservatives push deep cuts in exchange for debt limit increase. Roll Call: "Looking to up the ante on debt limit negotiations, House conservatives will push to enact spending changes included in the House-passed budget in exchange for an increase in the nation’s debt ceiling ... Rep. John Fleming, R-La., said that, for him and many members of the conservative Republican Study Committee, any deal to raise the debt ceiling would have to be tied to a budget that would balance in 10 years 'at a minimum.'"
Republicans may still want a grand bargain. NYT: "...if Republicans take control of Congress and the White House in the next two elections ... they would then shoulder the political responsibility for the inevitable pain that comes from curbing those huge and popular programs. Much as Republicans may dislike Mr. Obama and his policies, a Democratic president can provide them a measure of political cover ... Without cuts in entitlement programs, which can only come through a deal with Mr. Obama, Republican leaders will have trouble making Congress do something they acknowledge it must do — raise the debt limit."
Pentagon announces sequester furloughs. Politico: "Defense Secretary Chuck Hagel told 680,000 civilian workers they’d have to stay home 11 days without pay. About 140,000 workers from other government agencies have already been given furlough notices. The number is expected to grow as more department heads make their own tough decisions..."
Immigration Reform Faces High-Tech Visas
High-tech visas delicate issue for immigration reform. Politico: "The Senate Judiciary Committee on Tuesday largely kept intact an agreement on high-tech visas in the Gang of Eight immigration bill, making modest changes while defeating measures that would dramatically alter the compromise. But one major flash point remains ... Sen. Orrin Hatch (R-Utah), a major advocate for the tech industry, is viewed as a potential swing vote ... But Hatch’s plans run right up against Sen. Dick Durbin (D-Ill.), a top critic of H-1B visas and a Gang of Eight negotiator ..."
"House bipartisan group at "impasse" reports Politico: "...top aides and lawmakers are unsure if they’ll ever come to the agreement they’ve sought for four years ... Some Democrats and immigration reform advocates don’t want the House to move quickly. They are pressuring the group to slow down and wait until the Senate passes a bill before announcing a compromise, fearful that a conservative House bill would pull the reform effort to the right too soon."
GOP Rep. Steve King deems immigration reform a plot to legalize new Democratic voters. CNN quotes: "[Democrats] are in the process of seeking to establish another monolithic voting bloc"
Breakfast Sides
Wal-Mart tied to Bangladesh factory disaster, pledges new safety measures. NYT: "Wal-Mart promised to stop production immediately at factories if urgent safety problems were uncovered and to notify factory owners and government authorities of improvements. But the company, the world’s largest retailer, stopped short of committing to help underwrite the improvements — one of the crucial aspects of the Bangladesh safety agreement adopted by European companies."
Obama, GOP not far apart on student loan reform. McClatchy: "Congress now sets the rate, but a plan from House Republicans would base it on market rates instead. If it becomes law, subsidized loans – those that don’t accumulate interest while a student is in school – would have a higher interest rate next year. Unsubsidized loan rates would be lower. In the next five years, if interest rates rise as expected, student loans would cost more. The White House plan is similar, but would use a different formula than that set forth by House Republicans ... Some House Democrats and student advocates say Congress should continue to set a low rate, at least for now."
House GOP to hold 37th vote to gut ObamaCare. NYT: "...since 2011, Republicans have spent no less than 15 percent of their time on the House floor on repeal in some way."
