On August 2, 2011, the President signed into law the Budget Control Act of 2011 (Budget Control Act).  The Budget Control Act is a deficit reduction package that cuts spending, but includes no revenue raisers at this time.  It consists of two main parts: (1) cuts approximately $1 trillion from federal spending over the next 10 years, and (2) creates a 12-member Joint Select Committee on Deficit Reduction (Joint Select Committee).  The Joint Select Committee is charged with the goal of reducing the federal deficit by at least an additional $1.5 trillion over 10 years.  If the Joint Select Committee can’t agree on legislation, or Congress fails to act upon the Join Select Committee’s proposal, then automatic spending cuts will kick in: 50/50 between discretionary and defense spending.

Click on the following to view a complete copy of the “Budget Control Act of 2011.”

http://www.gpo.gov/fdsys/pkg/BILLS-112s365enr/pdf/BILLS-112s365enr.pdf

View article from CCH on the Budget Control Act of 2011:

http://tax.cchgroup.com/downloads/files/pdfs/legislation/debtceiling.pdf