Super Committee Fails to Reach Agreement on Debt Crisis

A bipartisan, bicameral “super committee” of Congressional leaders announced today (Monday, Nov. 21) that they had failed to reach an agreement to tackle the country’s deficit spending and $15 trillion debt crisis.

After the financial markets closed, Rep. Jeb Hensarling (R-Texas) and Sen. Patty Murray (D-Wash.), co-chairs of the 12-member debt reduction panel, said that “after months of hard work and intense deliberations, we have come to the conclusion today that it will not be possible to make any bipartisan agreement available to the public before the committee’s deadline.”

“Despite our inability to bridge the committee’s significant differences, we end this process united in our belief that the nation’s fiscal crisis must be addressed and that we cannot leave it for the next generation to solve,” a joint statement read. “We remain hopeful that Congress can build on this committee’s work and can find a way to tackle this issue in a way that works for the American people and our economy.”

The group was charged earlier this year with finding common ground for a solution to reduce the debt and get a grip on government spending by slashing at least $1.2 trillion in federal spending over the next 10 years — an amount that still wouldn’t come close to pulling America out of the red.

In the end, all they found was a stalemate.

Republicans blamed Democrats for relying too heavily on tax increases and not enough on spending cuts in entitlement programs to solve the debt problem. Democrats complained that Republicans weren’t willing to consider any tax hikes on the wealthiest Americans and that spending cuts and changes were proposed in a number of budgets including long-protected sacred cows, such as Medicare and Social Security.

IN THEORY, ACROSS-THE-BOARD CUTS TO KICK IN
When the super committee was established earlier this year, it was structured in a way to institute across-the-board spending cuts in the federal government should the group fail.  Those cuts won’t start for at least another year.

The cuts include more than $1 trillion to federal budgets during the next decade. The nation’s military would bear the biggest brunt of the deep cuts, as much as 10%, or $450 billion over the next 10 years.

However, some GOP lawmakers are vowing an effort to repeal the automatic cuts even though it is uncertain if a measure would be successful. President Obama has pledged to veto a repeal.

Education, agriculture and environmental programs could face cuts of around 8%. The law exempts Social Security, Medicaid as well as certain programs that benefit veterans and low-income Americans. Medicare would see a 2% spending reduction.

ARKANSAS OFFICIALS CHIME IN
Arkansas’ Congressional delegation wasted no time chiming in with their frustration on the gripping national topic. Whether subtly or directly, partisan blame was suggested by both parties.

U.S. Senator Mark Pryor – D:
“I am disappointed the twelve members of the supercommittee came up empty handed.  The supercommittee had the ability to reach an agreement, but not every member came to the table with the political will to do so. No one likes sacrifice, but we are in this together. I believe a majority of Americans are willing to do their part if the sacrifice is shared, balanced and will put our country on better footing for the future. Along with many of my colleagues on both sides of the aisle, I have been and will continue to work on solving our nation’s fiscal challenges. I remain hopeful that we outnumber those entrenched in ideology.”

U.S. Senator John Boozman – R:
“With an unprecedented $15 trillion debt, the American people deserve answers to how we will rein in reckless spending, maintain the viability of programs that are important for future generations and put our economy back on track. We had hoped the committee would find common ground to provide solid solutions.  Unfortunately, all members could agree on was that they couldn’t agree. This is unacceptable. The stakes are too high to walk away from this discussion so I will be working with my colleagues to provide us with financially sound footing that Arkansans and all Americans are counting on.”

U.S. Congressman Tim Griffin – R:
“Our debt is a staggering $15 trillion because Washington spends too much, not because it taxes too little. I am disappointed that some on the Supercommittee insisted on raising taxes in a recession instead of focusing on fundamental reform of our tax code and Washington’s spending addiction.  The insistence that tax increases be included in any deal, while at the same time refusing to address the major driver of our debt – entitlement spending – doomed any chance the Supercommittee had of seriously dealing with this crisis and demonstrates that some in Washington still don’t get it.  I, along with my fellow House Republicans, voted for the bold reforms necessary to get this country back on track in the House budget in the spring, and I am ready to vote for them again.”

U.S. Congressman Steve Womack – R:
“I’m disappointed in the Super Committee’s failure to reach some sort of deal. While I commend the efforts of those on the panel for their hard work and invested time, our country continues to look for answers to an unprecedented problem. However, I am optimistic that this Congress can find the solutions needed to balance our country’s budget. We must come together and work to find that solution as quickly as possible.”

U.S. Congressman Mike Ross – D:
“It’s incredibly disappointing and troubling that the Super Committee couldn’t put partisan politics aside to address this country’s fiscal crisis.  Their stalemate is just the latest example of the dysfunction in this Congress, which continues to weaken our economic recovery and punish working families. I was hopeful the Super Committee could get the job done and more.  In fact, I led an effort in the House of Representatives to get more than 100 members of Congress – both Democrats and Republicans – to urge the Super Committee to go bigger than its $1.2 trillion minimum requirement and present a plan that reduces the deficit by $4 trillion.  This was our nation’s opportunity to show the world how to lead, that America could step up and solve its own problems.  But, once again, pure partisanship prevailed and gridlock remains in Congress. The American people expect their representatives in Washington to come together in a bipartisan way to solve the problems facing this country.  The Super Committee’s failure to work together and present a comprehensive plan to bring down our debt and put the country on a fiscally sustainable path not only puts our economy and national security at risk, but also jeopardizes our standing as a world leader.

Talk Business will update this story as more comments are received from Arkansas’ Congressional officials.