Deficit Reduction

October 31 00:00 2011

New York, October 30 ( – The bipartisan congressional “super committee” has not yet found any viable solution to the problem of deficit reduction even though it is just weeks away from a deadline. It is now moving into a serious-negotiations stage this week after partisan deficit-cutting proposals from both sides were promptly rejected. The deadline for the panel to reach an accord on cutting at least $1.5 trillion is until Thanksgiving.

Congress has so far not been able to agree to a deal to reduce the deficit because Republicans are refusing to impose new taxes and Democrats will only agree to cut federal programs if new revenues are incorporated in the proposals. The committee knows that if it fails to come to an understanding, a series of automatic spending cuts will be set into motion to reduce military and domestic spending. Both parties also realize that a failure would lead to turmoil in the financial markets.

The rough road ahead has been acknowledged by House Speaker John A. Boehner, who walked away from the summer debt talks with President Obama over the tax issue. He said, “I’m not surprised that, you know, we’re having some difficulty. This isn’t easy.”
The 12-member panel, made up equally of Democrats and Republicans, was formed as part of the summer debt-ceiling deal and has limited time to work.