The U.S. budget deficit will have to wait, reports the Associated Press. After what Democratic Sen. Patty Murray and Republican Sen. Jeb Hensarling characterized as “intense deliberations,” the congressional deficit super-committee failed to reach an agreement. The sides are reportedly still far apart.
Seeking to reduce deficit by $1.2 trillion
The congressional super-committee, which was established using allocated funds from the version of the budget approved this past summer, had aimed to reduce the federal deficit by at least $1.2 trillion over the next 10 years. Deep divisions between Democrats and Republicans over tax increases and cuts to social welfare programs like Medicare have precluded bipartisan agreement.
“Both sides are feeling angst and greater angst at the possibility of no agreement, and so they’re working harder, more creatively, to see what could be accomplished,” said Senate Finance Committee Chairman Max Baucus (D-Mont). “That’s happening on both sides.”
Sources indicate that budget deficit woes have placed the U.S. government in the position of having to borrow 36 cents of every dollar it spent in 2010. The national debt topped $15 trillion last week.
The tax more, spend less divide
According to Murray, Democrats feel that the rich must pay more in taxes. Republicans don’t agree.
“The wealthiest Americans who earn over a million a year have to share. And that line in the sand, we haven’t seen Republicans willing to cross yet,” she said.
In turn, Republicans like Arizona Sen. John Kyl claim the Democrats aren’t willing to cut spending to any real degree.
“If you look at the Democrats’ position it was ‘We have to raise taxes. We have to pass this jobs bill, which is another almost half-trillion dollars. And we’re not excited about entitlement reform,’” Kyl exclaimed on NBC’s “Meet the Press.”
Deadline is today
While today is the agreed upon deadline for the super-committee, the panel officially has until Wednesday, Nov. 23, to approve a deal. The buffer may be a moot point, however, as the panel’s own rules require a plan to be unveiled 48 hours in advance.
Assuming no unlikely sudden agreement is reached today, $1 trillion in automatic spending cuts will be enacted over nine years, starting in 2013. Domestic programs and the Pentagon budget will be slashed, according to the Congressional Budget Office. The resulting lower interest costs on the national debt will also save the U.S. $169 billion.
In response to the congressional super-committee’s failure to reach a deficit reduction agreement today, the Dow Jones dropped 2.1 percent (248.85 points) to 11,547.31 as of 4:12 p.m. EST, notes Marketwatch.
CNN coverage of super-committee failure to reach debt deal
Associated Press: http://on.msnbc.com/sYSHYD
The State Column: http://bit.ly/tyI9Bp
Do you have a fantastic idea related to this article, but just don't have the money you need to start your own company or side-business? Get the loans you need from https://personalmoneynetwork.com to help get your new company underway, from the small loan professionals at PersonalMoneyNetwork.