Today, Speaker John Boehner (R-OH) rejected Senate Majority Leader Harry Reid’s (D-NV) plan for raising the debt limit, claiming that it was full of gimmicks. Boehner’s principle criticism was that Reid’s plan counted $1 trillion in savings from winding down the wars in Afghanistan and Iraq.
In a remarkable interview on CNBC, Majority Leader Eric Cantor admitted to Larry Kudlow that both the House Republican budget and the “Cut, Cap, and Balance” Plan — which were both supported by nearly the entire GOP caucus — also counted savings from winding down the wars:
Cantor: Speaker Boehner came out months ago and said we are not going to increase the debt ceiling unless we have comensurate or even greater cuts in spending. Now Sen. Reid’s plan doesn’t do that. What Sen. Reid’s plan says is we’re going to raise the debt ceiling $2.4 trillion and we are also going to cut spending but what he does is counts over a trillion dollars in spending that is assumed to decrease and go away anyway which is the spending associated with the wars in Iraq and Afghanistan.
Kudlow: Yes, but isn’t that in the Paul Ryan baseline also, which is the baseline for Cut, Cap and Balance.
Cantor: But, but, but… absolutely it is.
Kudlow started the interview by posing the following question to Cantor: “What’s so bad about the Harry Reid plan? It looks very Republican to me.”