President Obama signed into law the “Budget Control Act of 2011”, following approval by the U.S. Senate.
The $2.4 trillion deficit-reduction plan, passed the Senate Tuesday in a 74 to 26 vote, following passage on Monday night by the Republican-controlled House of Representatives.
Obama immediately signed the bill into law, which lifts the government’s $14.3 trillion debt ceiling several hours before midnight deadline on Tuesday.
Despite the president’s rhetoric and calls for a balanced approached to cutting the nation’s deficit, the bill signed into law contains only spending cuts, with $1 trillion up front and another $1.5 trillion to come from recommendations arising from a congressional Joint Select Committee on Deficit Reduction by late November.
The brunt of the spending cuts are expected to fall squarely on the most vulnerable–working Americans, seniors, children and the poor.
Obama in brief remarks on Tuesday, repeated his calls for a balanced approach, intimating once more that the Committee’s recommendations must contain both spending cuts and revenues.
“We cannot balance the budget on the back of the very people who have borne the brunt of the recession … everyone is going to have to chip in, that’s only fair,” Obama said in an address from the White House Rose Garden.
Senate Republican Leader Mitch McConnell called the bill a “first step,” and said further spending cuts were needed.
Republican leaders have said, it is unlikely that revenues will be part of any proposals arising from the congressional Joint Select Committee on Deficit Reduction.
The stage seems set for another showdown between Democrats and Republicans before year end. Many expect Mr. Obama will once again cave to Republican demands and sell out working Americans.
