The deficit reduction “super committee,” as it has come to be known, was proposed as a sweetener during a bitter debate last July over raising the national debt limit to $17 trillion – a move that many tea partyers and GOP conservatives had pledged to oppose. It’s now the defacto clearinghouse for major spending legislation for the 2012 fiscal year.
The panel has until Nov. 23 to present a roadmap to getting the nation back on a fiscally sustainable course over the next 10 years. Congress must vote the package up or down on an expedited track – no amendments, no filibuster – by Dec. 23. Failure to do so would trigger deep cuts in discretionary spending, half to be sustained by the Pentagon, after January 2013.
But the 12-member panel begins its work deeply divided on basic assumptions on what caused the nation’s unsustainable deficits and how to curb them. Republicans see the issue mainly or solely as too much government spending. Democrats tend to see the problem as not enough government revenue, plus Bush-era policies – including historic tax cuts and two wars – paid for on credit.
Opening the panel’s first public hearing on Tuesday, Sen. Patty Murray (D) of Washington, a co-chair, called for “a balanced and bipartisan plan to fiscal health and economic growth.” She applauded a budget deal in the 1990s between President Clinton and Republicans that made “smart cuts” to government spending, but also continued the “strong investments in health care, education and infrastructure” needed for economic growth.
Republicans on the panel are cool to the prospect of adding billions in stimulus spending to their mandate. “A path to credible deficit reduction is a jobs program,” responded Rep. Jeb Hensarling (R) of Texas, the Joint Committee’s other co-chair. “We have a spending-driven debt crisis. The deficit reduction will be a jobs plan.”