Deficit Reduction, Supercommittee | featured news

Americans blame the failure of the debt "super committee" on everyone involved, a Reuters/Ipsos poll showed on Tuesday, despite the best efforts of Democrats and Republicans to point fingers at each other.

A long-running war between Democrats and Republicans over Bush-era tax cuts doomed the debt supercommittee's chances of reaching a deal. Efforts to overhaul the tax code may await the same fate as both parties gear up to make taxes a central issue in 2012 elections....

It's just about over for a special deficit-reduction supercommittee, which appears set to admit failure today in its quest to sop up at least $1.2 trillion in government red ink over the coming decade. The bipartisan 12-member panel is sputtering to a close after two months of talks in which key members and top congressional leaders never got close to bridging a fundamental divide over how much to raise taxes. The budget deficit forced the government to borrow 36 cents of every dollar it spent last year.

With the clocks ticking down to deadline, it is becoming increasingly apparent on Capitol Hill that the supercommittee will not be able to reach its goal of cutting $1.2 trillion from the national debt.

A bipartisan group of lawmakers from both houses urged the deficit-reduction supercommittee Wednesday to “go big” as it nears a deadline to avoid mandatory across-the-board cuts, telling the panel it has significant congressional support for a deal that would cut the deficit by about $4 trillion. But Democrats and Republicans on the supercommittee later held separate meetings amid mounting pessimism that the 12-member panel would be able to reach an agreement.