Washington News

At publication time, the six Democrats and six Republicans of the Supercommittee appear to be quite far apart as the November 23 deadline approaches. Given the very limited time available, the prospects for agreement appear to be growing rather slim.

If there is no agreement on a deficit solution of $1.2 trillion or more, then in 2013 there will be substantial cuts for both defense and Medicare providers. The $1.2 trillion in cuts will be allocated over the next decade.

The Supercommittee Co-Chairs are Rep. Jeb Hensarling (R-TX) and Sen. Patty Murray (D-WA). In a media interview this week, Hensarling indicated that tax increases are "not going to happen." He stated, "We're facing a jobs crisis and a debt crisis. We're certainly not going to exacerbate one by trying to address the other." Hensarling noted that Republicans had made a concession by offering $250 billion in new revenue as part of a plan to lower the top individual rate to 28%. The six Democrats on the committee are discussing plans and may offer an alternative during the weekend.

A bipartisan group of senators and representatives held a press conference this week. House Democratic Whip Steny H. Hoyer (D-MD) spoke for the group and expressed a hope that a "Go Big" plan that involves a $4 trillion solution could be reached. He stated, "The committee, for the sake of our country and its sound fiscal future, should recommend a package of cuts, revenues and reforms consistent with the Bowles-Simpson, Domenici-Rivlin, and Gang of Six proposals."

If there is no agreement, Senate Majority Leader Harry Reid (D-NV) stated that he will not block the $1.2 trillion in automatic spending cuts. In addition, President Obama placed a phone call to Co-Chairs Hensarling and Murray. He also indicated that the White House would not stop the automatic reductions.

Editor's Note: Under the Budget Control Act of 2011, which created the Supercommittee and mandates the potential budget cuts, the Congressional Budget Office must score any bill two days prior to the deadline. Therefore, the actual deadline for action is Monday, November 21, 2011. A compromise by the Supercommittee must be reached this weekend in order for a committee vote on Nov. 23.