That’s Jake Tapper’s verdict. The trigger deal:
If the super-committee tasked with entitlement and tax reform fails to come up with $1.5 trillion in deficit reduction that passes Congress, the “neutron bomb” goes off, — as one Democrat put it — spending cuts that will hit the Pentagon budget most deeply, as well as Medicare providers (not beneficiaries) and other programs.
If the super-committee comes up with some deficit reduction but not $1.5 trillion, the triggers would make up the difference.
There are now debates on how deep defense spending would be cut compared with programs for the poor. But it’s perfectly possible we’ll see the deepest defense cuts in memory. Revenues?
Democrats say –- if tax reform doesn’t happen through the super-committee, President Obama will veto any extension of Bush tax cuts when they come up at the end of 2012, further creating an incentive for the super-committee to act.
The good news for the economy: there will be no further debt ceiling moment until after the next election. It’s not done till it’s done, of course. And the magic moment will be when Boehner tries to sell this to his caucus. But this is a good sign that we will postpone jumping off the cliff for a while.
The Dish 