A congressional “super committee” seems unlikely to help save the US from a deficit failure. The committee which was responsible for finding $1.2 trillion in savings to avoid deep spending cuts is on verge of a collapse. By law, the committee’s failure automatically triggers new caps on spending, cutting $1.2 trillion from the military, education, health care and other priorities over 10 years starting next fall.
Dialogue between Republicans and Democrats is believed to have broken down; The Democrats proposition for an increase in taxes has been opposed by the Republicans. The Republicans on their part have put forward spending cuts in defense spending and Medicare, which were deemed unacceptable by the Democrats.
The commission set up in August was instructed to come up with a working solution by Nov 23rd. Failure do so would make the US susceptible to default on debt payments. Democratic Senator John Kerry also warned that inability to find a solution by the deadline would make deficits the major issue in next year’s presidential election.
The committee is expected on Monday to announce that they have been unable to broker a deal.