U.S. Debt Supercommittee Ready to Announce Failure

A debt-reduction committee with special powers that was supposed to dissolve congressional gridlock in Washington is instead on the brink of failure, setting the stage for $1.2 trillion in automatic spending cuts.

The 12-member bipartisan supercommittee likely will announce today that it can’t reach agreement on deficit savings, according to a Democratic aide. The aide, who wasn’t authorized to discuss internal matters publicly and requested not to be identified, said in an e-mail that it was highly unlikely that the committee’s talks could be salvaged.

Today is the deadline for the Congressional Budget Office to receive information for scoring a proposal in advance of the supercommittee’s Nov. 23 target date for reaching a deal. Republican Senate Minority Leader Mitch McConnell has declared over the past few months that failure is “not an option” for the panel, created in August after rancorous debate over raising the nation’s borrowing limit that plunged congressional approval ratings to lows of between 9 percent and 14 percent.

Source

Well this isn't really a surprise for me, but it may be for some. This was doomed for failure from the start. You cannot just hand pick 6 representatives three from each side of the isle, throw them together and expect them to work out their issues differently than they did before. So, now that this is going to fail, the scheduled cuts will take place which is what everyone was afraid of.

If the committee doesn’t come up with an agreement, $1.2 trillion in across-the-board spending cuts to domestic and defense programs are set to take effect starting in January 2013. The lack of a deal would deprive President Barack Obama of a vehicle extending a payroll tax cut and insurance benefits for unemployed Americans, which expire at the end of the year

It's the domestic cuts that worry me the most. The defense program cuts, I am hoping start with projects that are in development stages and with prototypes.

reply to post by SpaDe_


All I can say is, BURN THEM AT THE STAKE! This is pathetic, because these idiots can't cast aside their greed and ignorance, now millions will have to suffer. Idiots!

reply to post by SpaDe_


Considering the last time they met I think was November 1st? I was reading that today. They clearly did not try to do anything about anything.

This was all a scam so they could implement their "instant" spending measures. Nobody on this supercomittee wanted anything done, so they did nothing.

You don't go 3 weeks without meeting if you actually plan on being productive.

~Keeper

These Sequester Cuts are a joke.

Changes in spending from sequestration result in new budget projections below the CBO’s baseline projection of spending based on current law. The federal government would spend $3.62 trillion in 2013, the first year with sequestration, versus the $3.69 trillion projected by CBO. Total spending in FY2012 will be $3.61. By 2021, the government would spend $5.26 trillion versus the $5.41 trillion projected. Overall, without a sequester, federal spending would increase $1.8 trillion (blue line) between FY2012 and FY2013. With a sequester, federal spending would increase by $1.65 trillion (red line).

A further breakdown of the percentage of budget programs reveals that sequestration provides relatively small reductions in spending rates across the board. Between 2012 and 2021 with sequestration, defense increases 16% (vs. 23%); nondefense discretionary increases 6% (vs. 12%); Medicare increases 71% (vs. 74%); and net interest increases 160% (vs. 179%).

As we can see, under sequestration, spending in each categories would go up. The only reduction would be a reduction in the growth rate of spending—which is quite different from a spending cut.

They have been a joke from the get-go. This isn't really "cutting back" - it's just easing back projected spending. The budget for all of these items (including "defense") will still grow.

Charts and explanation provided here.

I believe since the committee failed, we now have to go with the back up plan.
According to CNN Article this means serious cuts in the defense budget.

Good. As an active duty Navy this means less stupid deployments to an area of the world which hates us anyway. I'm all about defending our country, when we require it. Our politicians need to stop focusing on other countries, and start fixing the country I've spent the last decade "defending" or there won't be any country left to defend!

I personally am glad the super-committee failed, cut the damn defense budget! It's the *ONLY WAY* to stop these endless "War's" our politicians seem hell bent on continuining. If cutting the budget means I have to seperate and become a civilian and find a real job, then by all means do it.

Thiswas a resouding success for the Obama administration.

Bush's tax cuts expire
Defens gets cut drastically

So it's a big win. This wasn't supposed to succeed. We now have a raise in taxes that Obama can say wasn't his fault, and cuts in military that he also can say wasn't his fault.

reply to post by beezzer


A rise in the payroll tax along with dropping millions off of unemployment is a victory for Obama?

Originally posted by illuminatislave
reply to post by beezzer

 

A rise in the payroll tax along with dropping millions off of unemployment is a victory for Obama?

An increase in taxes (becausethey WON'T CUT SPENDING) and a draconian cut in defense.

Obama and his minions should be dancing in the streets tonight.

CHA CHA CHA

How can ever a civilised nation not have the rich taxed???!!!!!

The Republicans excuse of not taxing the rich is because it would curtail the rich from investing their money into the economy.

Fine. Let the Republicans win. Support the Republicans NOT to tax the rich or increase it.

BUT AT THE SAME TIME, there must be legislation ensuring that the rich MUST SHOW EVIDENCES that they had INVESTED money into the economy, NOT THROUGH THE CASINO STOCK MARKET, but ACTUAL job creations for hundreds if not millions.

If those rich cannot show any evidence, then they should just cut the BS and pay up the mandated taxes to support social expenditure which will include education and upgrading skills of workers to move up the next level to take on higher paying jobs.

Win - win solution for all, both parties win, economy gains, instead of just more stonewalling BS from the republicans' rhetorics and insane excuses NOT to raise taxes on the rich.

While taxing the rich alone will not pay off the national debt, no class alone can, those funds from them are immense and can help very much in circulationg wealth into the nation to prep up the current economy.

Do not despise those on temporary social welfare to help them get back on their feet, for even their few dollars are circulating wealth and keeping private enterprise retailers healthy, be they mom & pop shops or corporations, which more jobs will then not be lost, which means taxes from them can be collected for funding of infrastructure building, improve roadworks, lightings, rails, etc to bring more wealth to the nation with faster and better accessibility.

Do not despise those high numbers of teachers whom will be laid off if funds are cut, for they not only educate our future, they too circulate wealth unlike the rich whom only hoard up money.

There are a few socially conscious wealthy americans whom requested as a class be taxed more to help the nation in this dire straits of our time, but they are far too few to make a difference. It is my hope, and many as well, that the rich realizes that they cannot lug their money into the next life, nor the immense wealth they hold can ever be spent even in several lifetimes rationally.

But if they persist, then the increase in tax MUST be carried forward immediately now, for the sake of the living and those yet to be born.

1. If they wish to hide their wealth in banks, then they must pay a higher capital gain tax, no matter where their wealth is hidden - retail, investment or overseas banks.

.
2.If they wish to hoard their wealth at home, not pay taxes for social expenditure, then police forces must be withdrawn from patrolling their areas. Let them hire security guards on thriple shift to guard them 24hrs a day. At least some americans will then be hired.

.
3. If they wish to leave the country, then let them pay an EXIT TAX as a compensation for the years of support that USA had given them and made them wealthy, and wish them well in whereever they go, for there is no where to hide, for all nations will embark on appealing to the rich to help just as USA is doing.

.
4. If they wish to remain, and selfishly not wanting others to have a share of their wealth, and then decides to burn their money in one big bonfire, then let them. Next day, just simply authorize the FED to print the exact amount they had burnt, for those money were meant to be circulated and returned to the Fed one day, but is now burnt, gone and have to be replaced by new printing into the gov coffers, for that person had already shown no wish to own the money.

.
5. If they decide to hold their wealth, and then pay others a few pieces of silver to create chaos on the streets to topple those whom can legally tax them, then the nation must stand ready to fight back against such traitors, NOT with arms, but by non-violence, and let those paid provocatuers whom will resort to arms be localized, isolated and be arrested.

May the rich, for bloody once, do the right thing. Money can always be earned back once the economy is humming. Create more social problems with no sharing of wealth and Earth will go to hell for ALL mortals.

Yes let the same rats that pooped on up fix us once again. I wonder how many coffee breaks they take.
s.f op and thx for the thread.