What Do You Think About the Federal Debt Ceiling Deal?

Officials in Washington say they have struck a deal to meet an Aug. 2, deadline of keeping the United States from defaulting on its debt obligations. The proposal still has to be approved by both houses of Congress and signed by the president. 

According to press reports, the arrangement looks like this:

The first stage of deficit reduction will include $900 billion it cuts. Another $1.5 trillion in deficit reduction will come from a new Congressional panel or "Super Congress," by November. 

If they Super Congress doesn't succeed in making proper recommendations, $1.2 trillion will be cut from defense and other departments, with exemptions to Social Security and Medicaid (Medicare providers might be affected). 

The debt ceiling will increase in three phases: $400 billion right away, $500 billion later this year (subject to vote), and $1.5 trillion to get through 2012 (also subject to vote). 

Increased taxes will not be a part of the deal but an eventual vote on a Balanced Budget Amendment is. The Super Congress may consider a tax overhaul. President Barack Obama may veto any extension of the Bush tax cuts for those making $250,000 or more, if the tax code is not revised. 

Progressives in Congress and their opposites aligned with the tea party movement are balking at the deal.

What do you think? 

UPDATE: The CBO has issued a report about the proposal saying that it could potentially eliminate $2.1 trillion from the debt by 2021: CBO report