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FBN’s Gerri Willis on the automatic cuts that would kick in if the Super Committee does not reach an agreement on spending cuts.
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Five days just five days.
That's how much time -- left -- twelve lawmakers to reach a compromise on the budget.
It could be five months or five years on the odds of a compromise would still be -- denied.
The five days is what the super committee has -- these automatic budget cuts which we've been talking so much about will be triggered.
What would happen.
If that took place well it's -- six Democrats and six Republicans -- to reach an agreement we would see one point two trillion dollars in cuts.
But that's over ten years.
And they won't start kicking in until January 2013.
Now these cuts would also be put in place of congress rejects the super committee plan -- President Obama decides to veto it.
Now 94984.
That is billion dollars in cuts will be split.
Between defense and non defense programs.
The other twenty or so billion will come in the form a lower interest payments on -- now fifteen trillion dollars in debt which we've talked so much about.
According to the center for budget and policy priorities that's about 55 billion dollars in both defense and non defense spending each year.
Or 20/20 one think about that.
Social Security benefits though are exempt from the spending cuts as our Medicare benefits veterans' benefits.
Food stamps and some other programs that help seniors and for Americans.
But not everything has to having to deal with Medicare will be spared.
Payments to hospitals and other health care providers will be reduced by 2% a year.
These cuts will be coming just as obamacare really starts to kick in so.
Sure doctors are really happy here that's.
And regulatory agencies such as the commodity futures trading commission and it's SEC Securities and Exchange Commission will see their budgets slashed.
Making these are more likely they won't catch major violations.
One of the biggest casualties of the automatic cuts would be the military.
And as we've mentioned Defense Secretary Leon Panetta warning doomsday if -- super committee fails to act.
Pentagon RE facing 450 billion dollars in cuts over the next ten years.
If these automatic cuts take place that would mean a 23%.
Cut in their budget.
In the first year.
Now by his calculation Panetta says we would then have the smallest ground forces since 1940.
Can you imagine that.
The smallest number of shifts in the navy since 1915.
And the smallest air force -- Not to mention possible months long furloughs of civilian employees and a complete overhaul of our national security strategy.
But secretary Panetta shouldn't panic just yet because congress could change the cuts.
Congress can take all of next year an election year to rescind or change any of the things they don't like.
I'm not very optimistic any -- -- -- plan will emerge by 2013 and I'll tell you why.
Because this is the fourth group of people tasked with coming up with one.
The National Commission -- fiscal responsibility and reform headed -- Bowles and Simpson we spoke to the just this week.
They came up with a plan to cut four trillion dollars and that went nowhere.
Debt reduction task force with.
And the gang of six the bipartisan senators had a three and a half trillion dollar plan.
It went nowhere.
Look the administration's approach to debt reduction is the definition of insanity.
Doing the same thing over and over again and expecting different results.
The national debt is now about fifteen trillion dollars with -- stopped playing games and start taking our national debt seriously.
As taxpayers.
Already are.
That's what I.
