Congress Adjourns Following Agreement on Debt Ceiling
After months of partisan dealings, and just hours before the looming deadline, Congressional leaders were able to reach agreement on a bill raising the federal debt ceiling. While the bill provides $900 billion in immediate debt ceiling relief, the issue will continue to captivate Congress again in the fall, with all eyes focused on the “Super Committee” the agreement creates. As spelled out in the legislation, following an early fall deadline for the 12 members (6 from the House and 6 from the Senate, divided evenly by party) to hold the first meeting, by November 23rd the “Super Committee” must provide Congress a report outlining $1.2 - $1.5 trillion in additional budget cuts, which could include changes in entitlement programs, tax laws, additional revenues, or any other approach the Committee agrees to. If the Super Committee fails to come to an agreement, or Congress fails to act on the agreement by December 23rd, a “trigger” would automatically cut an additional $1.2 trillion dollars in spending split evenly between domestic and defense spending.
Given the number of unknowns, and the possibility that the Super Committee may consider ideas for generating revenue, potentially including the deductibility of advertising, MPA will stay fully abreast of, and engaged in, the conversation on the Hill. If you have questions on this issue, or others in the newsletter, please don’t hesitate to contact us.