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It would also create a $60 billion reserve that Congress could use for further debt reduction or additional tax cuts.
It's also one reason why Europe has taken such a hard line on further debt reduction: the bigger Greece's debt, the more control Europe has over what Greece can do.
Senator Tom Daschle of South Dakota, the Democratic leader, said the cut would "crowd out all other priorities" like further debt reduction and prescription coverage under Medicare and threaten the solvency of the Social Security and Medicare programs.
In my mid-session review, therefore, I propose to set aside a $500 billion reserve for America's future, a fund that could eventually be used for any number of key priorities, from retirement savings, to tax cuts, to investments in education, research, health care and environmental protection, to further debt reduction.
"We are committed to further focusing our portfolio by shedding nonstrategic assets that can no longer compete for growth resources inside the company, and in the process generating funds for further debt reduction".
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Yet moderates and members of the appropriations committees warned that the spending levels in the budget plan were already unrealistically low, and that passing appropriations bills would become even more difficult if conservatives insisted on further cuts or more debt reduction.
Some observers were expecting further announcements accelerating the progress of its debt reduction plans outlined in November.
A shutdown is highly UNLIKELY at this point (no one wants to wade into that tar pit)... but then you have budget resolution, MAYBE (doubtful) tax reform deal, and further negotiations between Obama and GOP over the second half of debt reduction.
This year, a briefing theme was that President Barack Obama has little appetite for a debt reduction deal and no plans to further tackle deficit reduction.
The Obama administration, by contrast, has backed a bipartisan bill to impose further budgetary austerity on the island, coupled with meaningful debt reduction.
Her plan, similar in general terms to the one proposed by Vice President Al Gore, goes further than Mr. Gore's by setting aside more money for debt reduction and imposing legislative hurdles for making exceptions.
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