The grand bargain was an attempted political compromise during the 2011 budget debates in the United States Congress. Lawmakers were under pressure to pass a budget before automatic spending cuts known as sequestration took effect on August 4, 2011. [1] [2] President Barack Obama advocated historic cuts to social security, Medicare, and Medicaid, in exchange for an increase in federal taxes on upper income individuals, with the goal of reducing the federal deficit. [3] [4]
Moderates from both the Republican and the Democratic party were in favor of the compromise. However, the Tea Party faction of the Republican party firmly objected to tax increases, causing Republican Speaker of the House John Boehner to not support the deal. [3] The progressive faction of the Democratic party was opposed to cuts to social security and the social safety net. An effort to defend Social Security was spearheaded by independent Senator of Vermont Bernie Sanders. [5] Due to the opposition arrayed against it, the compromise failed. [6] [7] [8]
Among centrist pundits, hopes for the grand bargain lasted until the resignation of Speaker of the House John Boehner in 2015. [9] [10]
The Congressional Progressive Caucus (CPC) is a congressional caucus affiliated with the Democratic Party in the United States Congress. The CPC represents the most left-leaning faction of the Democratic Party. It was founded in 1991 and has grown since then.
John Andrew Boehner is an American retired politician who served as the 53rd speaker of the United States House of Representatives from 2011 to 2015. A member of the Republican Party, he served 13 terms as the U.S. representative for Ohio's 8th congressional district from 1991 to 2015. The district included several rural and suburban areas near Cincinnati and Dayton.
The 112th United States Congress was a meeting of the legislative branch of the United States federal government, from January 3, 2011, until January 3, 2013. It convened in Washington, D.C. on January 3, 2011, and ended on January 3, 2013, 17 days before the end of the presidential term to which Barack Obama was elected in 2008. Senators elected to regular terms in 2006 completed those terms in this Congress. This Congress included the last House of Representatives elected from congressional districts that were apportioned based on the 2000 census.
The phrase Bush tax cuts refers to changes to the United States tax code passed originally during the presidency of George W. Bush and extended during the presidency of Barack Obama, through:
The National Commission on Fiscal Responsibility and Reform was a bipartisan Presidential Commission on deficit reduction, created in 2010 by President Barack Obama to identify "policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run". The 18-member Commission consisting of 12 members of Congress and six private citizens, first met on April 27, 2010. A report was released on December 1, 2010, recommending a combination of spending cuts and tax increases.
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, also known as the 2010 Tax Relief Act, was passed by the United States Congress on December 16, 2010, and signed into law by President Barack Obama on December 17, 2010.
The 2012 United States federal budget was the budget to fund government operations for the fiscal year 2012, which lasted from October 1, 2011 through September 30, 2012. The original spending request was issued by President Barack Obama in February 2011. That April, the Republican-held House of Representatives announced a competing plan, The Path to Prosperity, emboldened by a major victory in the 2010 Congressional elections associated with the Tea Party movement. The budget plans were both intended to focus on deficit reduction, but differed in their changes to taxation, entitlement programs, defense spending, and research funding.
The ongoing political debate in the United States Congress about the appropriate level of government spending and its effect on the national debt and deficit reached a crisis in 2011 that was centered on raising the debt ceiling, which is normally raised without debate. The crisis led to the passage of the Budget Control Act of 2011.
The Joint Select Committee on Deficit Reduction, colloquially referred to as the Supercommittee, was a joint select committee of the United States Congress, created by the Budget Control Act of 2011 on August 2, 2011. This act was intended to prevent the sovereign default that could have resulted from the 2011 United States debt-ceiling crisis. The objective of the committee was to develop a deficit reduction plan over 10 years in addition to the $917 billion of cuts and initial debt limit increase of $900 billion in the Budget Control Act of 2011 that avoided a U.S. sovereign default. The committee recommendation was to have been subject to a simple vote by the full legislative bodies without amendment; this extraordinary provision was included to limit partisan gridlock. The goal outlined in the Budget Control Act of 2011 was to cut at least $1.5 trillion over the coming 10 years, therefore bypassing Congressional debate and resulting in a passed bill by December 23, 2011. On November 21, the committee concluded its work, issuing a statement that began with the following: "After months of hard work and intense deliberations, we have come to the conclusion today that it will not be possible to make any bipartisan agreement available to the public before the committee's deadline." The committee was formally terminated on January 31, 2012.
The Budget Control Act of 2011 is a federal statute enacted by the 112th United States Congress and signed into law by US President Barack Obama on August 2, 2011. The Act brought conclusion to the 2011 US debt-ceiling crisis.
The 2013 United States federal budget is the budget to fund government operations for the fiscal year 2013, which began on October 1, 2012, and ended on September 30, 2013. The original spending request was issued by President Barack Obama in February 2012.
The Justice Party is a political party in the United States. It was organized in November 2011 by a group of political activists including former mayor of Salt Lake City Rocky Anderson as an alternative to what they saw as a duopoly of the two major political parties. One of the major goals of the Justice Party is removing corporate domination and other concentrated wealth from politics. In 2012, the Justice Party nominated Rocky Anderson for president and Luis J. Rodriguez for vice president. The Justice Party endorsed Bernie Sanders during the primary election in 2016.
The United States fiscal cliff refers to the combined effect of several previously-enacted laws that came into effect simultaneously in January 2013, increasing taxes and decreasing spending.
The American Taxpayer Relief Act of 2012 (ATRA) was enacted and passed by the United States Congress on January 1, 2013, and was signed into law by US President Barack Obama the next day. ATRA gave permanence to the lower rates of much of the "Bush tax cuts".
The 2014 United States federal budget is the budget to fund government operations for the fiscal year (FY) 2014, which began on October 1, 2013 and ended on September 30, 2014.
The Continuing Appropriations Act, 2014 is a law used to resolve both the United States federal government shutdown of 2013 and the United States debt-ceiling crisis of 2013. After the Republican-led House of Representatives could not agree on an originating resolution to end the government crisis, as had been agreed, the Democratic-led Senate used bill H.R. 2775 to resolve the impasse and to satisfy the Origination Clause requirement of Article One of the United States Constitution, which requires that revenue bills must originate in the House of Representatives. Traditionally, appropriation bills also originate in the House of Representatives.
From October 1 to October 17, 2013, the United States federal government entered a shutdown and curtailed most routine operations because neither legislation appropriating funds for fiscal year 2014 nor a continuing resolution for the interim authorization of appropriations for fiscal year 2014 was enacted in time. Regular government operations resumed October 17 after an interim appropriations bill was signed into law.
The ongoing political debate in the United States Congress about the appropriate level of government spending and its effect on the national debt and deficit reached a crisis that was centered on raising the debt ceiling, which is normally raised without debate. It began in January 2013, when the United States reached the debt ceiling of $16.394 trillion that had been enacted following the crisis in 2011.
The Bipartisan Budget Act of 2013 is a federal statute concerning spending and the budget in the United States, that was signed into law by President Barack Obama on December 26, 2013. On December 10, 2013, pursuant to the provisions of the Continuing Appropriations Act, 2014 calling for a joint budget conference to work on possible compromises, Representative Paul Ryan and Senator Patty Murray announced a compromise that they had agreed to after extended discussions between them. The law raises the sequestration caps for fiscal years 2014 and 2015, in return for extending the imposition of the caps into 2022 and 2023, and miscellaneous savings elsewhere in the budget. Overall, the bill is projected to lower the deficit by $23 billion over the long term.
The United States Federal Budget for Fiscal Year 2016 began as a budget proposed by President Barack Obama to fund government operations for October 1, 2015 – September 30, 2016. The requested budget was submitted to the 114th Congress on February 2, 2015.