Congressional Deficit Committee Concedes Failure
Tuesday, November 22nd, 2011Nov. 22, 2011
Leaders of the bipartisan (of or supported by two political parties) Congressional committee charged with finding at least $1.2 trillion in reductions in the deficit (an excess of spending over income) conceded yesterday that the members have failed to come to an agreement. Talks among members of the so-called Supercommittee, which was created to find ways to lower the national debt, broke down over taxes. The Democrats demand income tax hikes on the wealthiest Americans. The Republicans refuse to raise taxes at any level while demanding cuts to such social programs as Social Security, Medicare, and Medicaid.
The committee’s failure triggers a series of automatic cuts, which go into effect in 2013. (Both the Congressional committee and the automatic cuts were crafted as part of legislation passed in August that raised the debt ceiling, that is, the level at which the government can continue to borrow money.) The automatic cuts will affect a broad range of military and domestic programs. Speaking soon after the Congressional announcement, President Barack Obama promised to veto any legislation designed to avoid the automatic cuts. “There will be no easy off-ramps on this one,” the president said. “The only way these spending cuts will not take place is if Congress gets back to work and agrees on a balanced plan to reduce the deficit by at least $1.2 trillion… They’ve still got a year to figure it out.”