The Debt Ceiling Agreement
Legislation raising the U.S. debt limited — S. 365, the Budget Control Act of 2011 — passed the House of Representatives on August 1 by a vote of 269 to 161 and the Senate on August 2 by a vote of 74 to 26. The following is a summary of the major provisions. Stage One. The first part of the plan includes approximately $917 billion in deficit reduction through the establishment of 10-year caps. (Caps save $756 billion on their own, with additional savings coming from interest savings). In the first two years, there would be separate caps (firewalls) for…
