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Pelosi Outlines Revenue-Free Path Forward On Debt Limit Fight


Pelosi reiterated her insistence that Democrats will oppose cuts to entitlement benefits as a tool of deficit reduction. And she established a rule of thumb for how much help Boehner can expect from her party.

"As far as the number is concerned, the bigger the cuts the fewer the Democrats," she said.

But this again leaves open the question of what individual Democrats count as a benefit cut, and how well they'd take to the idea of a plan that didn't include agreed upon revenue increases, or guaranteed revenues in the future.

In an interview with TPM, Rep. Barney Frank (D-MA) -- the top Dem on the House Financial Services Committee -- dismissed outright, and in Frank-esque terms, the idea of reducing seniors' cost of living adjustments, or increasing the Medicare eligibility age. "That's people who've been sitting on their asses their whole lives telling some woman who's been standing on her feet as a store clerk that 67's too early for her -- she should do it till she's 70."

But he distinguished those sorts of benefit cuts from means-testing of both Social Security and Medicare, which he said would be appropriate steps to take to improve America's fiscal situation.

"A means test done in an efficient way isn't a problem," he said. "I understand that. Like in Social Security. We already have a partial means test. I get Social Security. My Social Security income is taxed as it should be. I would increase the tax rate on my Social Security income. You don't want to means test it up front -- that becomes awkward -- but say you're making more than $100,000? Tax my Social Security at 95 percent. That's fine. There's an easy way to do that."

On Medicare, "I would be for increasing copays for people above a certain income," Frank said. "I think high copays for people making more than $100,000 is perfectly reasonable."

To do any entitlement cuts along these lines, though, Democrats would need more than just a promise that revenues will be increased in the future. If Boehner asks to punt on that question, "The answer is we'd never accept it," Rep. Rob Andrews (D-NJ) -- ranking member of the Education & Labor health oversight committee -- told reporters Friday. "A promise alone will not get it done. He'd promise to bring up a bill that would raise net revenue of a trillion of dollars to be fair to everyone, and I'd promise to play center field for the Yankees. My intention is there but my ability isn't.... No way that is going to happen. There are no 'super-duper' promises there are only enforceable mechanisms and non-enforceable mechanisms. Without an enforceable mechanism there aren't going to be any Democratic votes in the process.

Republicans have to figure out a way to adopt an enforceable mechanism to increase revenues, because if they don't, Andrews noted, Dems have a wild card. "If nothing happens, there's a tax increase on the wealthy group January 1 of 2013."

Additional reporting by Igor Bobic.

About The Author


Brian Beutler is TPM's senior congressional reporter. Since 2009, he's led coverage of health care reform, Wall Street reform, taxes, the GOP budget, the government shutdown fight and the debt limit fight. He can be reached at