UPDATED August 1, 2011, New York Times

Comparing Deficit-Reduction Plans

Over the last several weeks, leaders in Washington have proposed various plans to address the nation’s growing deficit as a condition of raising the debt ceiling by Aug. 2. Below is a running comparison of some of the major proposals or ideas that have been released.

July 31How the Debt Plan Would Work

President Obama and Congressional leaders of both parties agreed late Sunday to a framework for a deal that would cut trillions of dollars in spending over the next decade and increase the government’s borrowing limit.

Immediate Increase

$400 billion increase in the debt ceiling to stave off default.

Additional Initial Increase

Additional $500 billion increase in the debt ceiling to carry through February. Congress can vote to stop this, but it would be largely symbolic because the president can veto.

If Congress
approves increase

If Congress
overrides increase

The bill retains a strategy first proposed by Senate Republicans that allows conservatives in the House to vote against a debt ceiling rise without actually defeating it, by giving the president authority to raise it subject to approval by Congress.

Obama can veto the override.

Oct. 1, 2011

Spending Caps Begin

Caps on spending will reduce the deficit by $917 billion over 10 years. Only $21 billion will be saved the first year, 2012.

By Nov. 23, 2011

Special Joint Committee

A 12-member House-Senate committee is charged with coming up with $1.2 trillion to $1.5 trillion in additional cuts or revenue. It can consider tax measures that increase revenue, as well as cuts in entitlements and defense.

By Dec. 23, 2011

Up or Down Vote

Congress votes on the joint committee’s plan with no amendments and no delays.

If enacted

If not enacted

Democrats and Republicans both strove to make this option unpalatable to force serious changes by the joint committee. Defense cuts could be half the total, a prospect tailored to make many conservatives shudder.

Jan. 15, 2012

Across the Board Cuts Triggered

Half would come from national security and defense. Medicare would be subject to limited cuts. Social Security and Medicaid are excluded. The cuts will take effect beginning January 2013.

Before Dec. 31

Balanced Budget Amendment

Both chambers of Congress must hold a vote on sending a balanced budget amendment to the states, which requires a two-thirds majority. The balanced budget vote is a largely symbolic action, potentially useful in re-election races for conservative Republicans but unlikely to get enough Democratic votes to pass.

If passed

If not passed

Obama can request a second debt ceiling increase of up to $1.5 trillion.

Obama can request a second debt ceiling increase of up to $1.2 trillion.

Congress must vote on whether
to approve Obama’s request.

If Congress
approves increase

If Congress
overrides increase

Obama can veto
the override.

Second debt ceiling increase is final.