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UPDATE: Senate Votes Down Reid Bill, Awaits Obama/McConnell Spending-Cut-Only Debt Limit Bill

Sen. Mitch McConnell was on CNN's State of The Union this morning to proclaim that there's a deal which is roughly 3 trillion dollars in cuts on the table and he says will avert a disaster. Part of the process with be this crappy Supper Cat food commission that will include a trigger so that if the both sides don't come together then automatic cuts will appear.

A first step would include about $1 trillion in spending cuts while raising the debt ceiling about the same amount. The proposal also would set up a special committee of Democratic and Republican legislators from both chambers of Congress to recommend additional deficit reduction steps -- including tax reform as well as reforms to popular entitlement programs such as Medicare and Social Security.

The committee's recommendations would be put to a vote by Congress, without any amendments, by the end of the year. If Congress fails to pass the package, a so-called "trigger" mechanism would enact automatic spending cuts. Either way -- with the package passed by Congress or the trigger of automatic cuts -- a second increase in the debt ceiling would occur, but with an accompanying congressional vote of disapproval.

In addition, the agreement would require both chambers of Congress to vote on a balanced budget amendment to the U.S. Constitution. Such an amendment would require two-thirds majorities in both chambers to pass, followed by ratification by 38 states -- a process likely to take years.

McConnell was preening on the air that we tax too much already in America and have a spending problem so this new deal will satisfy the American people. He means it will satisfy the Tea Party hostage takers and everyone that's a Republican of course. All polling shows Americans DO NOT want Social Security, Medicare and Medicaid touched.

TPM outlines more of the deal here:

As noted here, the issue under contention was the design of a so-called "trigger," -- a penalty written into the bill meant to encourage Congress to pass further bipartisan deficit reduction legislation, authored by a new Special Committee, later this year. Here's what they've reportedly come up with, pending approval from Congressional Democrats and Republicans. From ABC News, the key detail: "The special committee must make recommendations by late November (before Congress' Thanksgiving recess). If Congress does not approve those cuts by December 23, automatic across-the-board cuts go into effect, including cuts to Defense and Medicare. This 'trigger' is designed to force action on the deficit reduction committee's recommendations by making the alternative painful to both Democrats and Republicans."

The Medicare cuts would supposedly fall on Medicare providers, not beneficiaries. The trigger would also include a vote on a Balanced Budget Amendment -- but no requirement that it be sent off to the states.

One source briefed on the negotiations confirms that the ABC story is correct "on the key points." A similar piece in National Journal suggests the Special Committee would not be allowed to reduce the deficit by raising new net tax revenue. The source disputes that notion, as does the ABC report.

Chuck Schumer steps in after Mitch had finished to try and reassure Democrats that there must be incentives put into the trigger.Throwing grandma under the bus for some cuts in defense spending is equitable in what way exactly?

CNN, Sen. Chuck Schumer (D-NY) said the final trigger must include incentives that don't simply allow Republicans to draw a line in the sand over revenues. "What is the sword over the Republican?" Schumer asked.

Well it has to be equal -- the one thing we are certain of, it has to be of equal sharpness and strength. The preference would be some kind of revenues, on wealthy people, on tax loopholes that would be in that. But another alternative, possible, being discussed, no agreement has been reached, would be defense cuts of equal sharpness and magnitude to domestic cuts.

In the past, when the trigger has had significant defense cuts, it's brought the parties to the table and they've come up with a balanced agreement that had both revenues and cuts.

Doesn't that make you feel better?