Can Congress make a deal on debt-reduction? Maybe, maybe not

Dick Durbin (REUTERS/Joshua Roberts)

Is the Congressional “super committee” charged with crafting a debt-reduction compromise stalled in a partisan mess or are they making progress towards a deal?

Depends on who you talk to.

Congressional sources tell Capitol Hill Blue that both sides are closing in on a compromise that can find at least $1.2 trillion in budget savings over 10 years but caution that differences between Republicans and Democrats can still derail an agreement by the November 23 deadline.

Publicly, both sides take hard stances, giving the impression that any real movement is mired in a mudpit of partisan bickering.

After meeting for two months, the two sides appear far apart but insiders say the opponents are moving at an agonizingly slow pace towards a compromise.

Republicans appear willing to compromise on ending some special interest tax breaks.

“Republicans are mentioning the word ‘revenue.’” Dick Durbin, the Democrats’ number two in the Senate said Wednesday.  “That’s a breakthrough.”

The “breakthrough” was a proposal from Republican super committee member Sen. Pat Toomey, who suggested limiting tax deductions to bring more money into the federal budget to help cut deficits.

But is the proposal real or just political theater?

“We recognize this is a good-faith way to allow Democrats to say they got additional revenue by doing tax reform, cutting out a lot of loopholes,” Republican Sen. John Cornyn told Reuters.

Democrats have offered to back down from President Barack Obama’s demand for tax hikes on the rich.

“We cold be closing in on a deal,” says one congressional aide.

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10 Responses to "Can Congress make a deal on debt-reduction? Maybe, maybe not"

  1. SDRSr  November 10, 2011 at 5:48 pm

    Yea, again the Middle Class is going to take in the Tax rear end. Yet the Majority of small business owners are members of the Middle Class, all the while the 1% is allowed to skate out of taxes, some to the point of not having to pay tax on the revenue they receive.

    Now tell me, who is for the Middle Class and Small Business Owners???

    • Sandune  November 11, 2011 at 1:38 pm

      Now tell me, who is for the Middle Class and Small Business Owners???

      I am!

      I come from a long line of merchants and in 1982 I took a chance and opened a bookstore to feed my own addiction to reading. I had spent many years working for the Chamber of Commerce offices from Santa Monica to San Simeon CA. Sadly, a week after my opening, Cox Television Cable came to the Central Coast knocking out any new readers that might have wandered into my Main Street store. I gave myself every advantage and owned the building, stocked it with books already paid for, and arranged for my store to open every day of the week. My family was in college and my exercising with the dogs along the beach took care of our health.

      In my innocence of not having a television at home, I had no idea what an impact this would have on my business. I smartened up after 7 years and rented my building out to clothe fat women. I took on fund raising for the C of C offices and kept most of the stores open; but not all!

      Unless people want to shop in their own villages, merchants will die. Walmart and Barnes and Noble killed off the independent stores.

      SDR, we are all affected by the economy but when do we really put the candidates on the line so we know who speaks for us? Has the Religious Right removed our choice as Republicans?

      Who really runs the Congress? Do we really care enough to search this out? Who are the bad guys in America? Reading through this site, it is apparently me.

  2. woody188  November 10, 2011 at 7:20 pm

    They forget to mention the biggest tax deductions they are looking at cutting are the child tax credit and the interest paid on a home mortgage. That’s done on purpose so the masses think Congress is working for them. Taking more from people will certainly cause the consumer driven economy into further contraction. All to pay back a debt to central bankers that was created out of thin air via the unconstitutional Federal Reserve. Hey, whadaya know. An unconstitutional “Super Congress” is forcing us to pay an unconstitutional debt. Imagine that!

    The only question is, will we accept it?

  3. Carl Nemo **==  November 10, 2011 at 7:41 pm

    In support of your post Woody188 Yahoo Finance just posted a timely article about how U.S. taxpayers are in for some ugly surprises during the next two years and beyond concerning loss of exemptions which will be a defacto tax hike for them.

    http://finance.yahoo.com/taxes/article/113757/higher-taxes-next-year-foxbiz?mod=taxes-advice_strategy

    ***

    “The only question is, will we accept it?” …extract from post

    ***

    More than likely Woody. If we look back on the past ten years as to all the outrageous scams our Congressional contingent have pulled on the American people it seem either the mass dispensation of antidepressants or fluoride in the water has turned our citizens into less than sheep. / : |

    Carl Nemo **==

  4. griff  November 10, 2011 at 8:45 pm

    How about we start by making our beloved congresspeople pay their “fair” share?

    I know, but it’s just a thought…

  5. eve  November 11, 2011 at 11:00 am

    Iceland should be our model. The American people must be stupid. I’m sure football ranks in importance above their financial freedom.

    As for certain European and their financial freedom please look at this short piece and decide for yourselves:

    http://lewrockwell.com/wenzel/wenzel142.html

    Funny, the same people are in control of ALL the financial positions of power worldwide.

    Conspiracy? Coincidence? It’s certainly one of the two choices but who cares? Football is on! YEAH!

    • woody188  November 11, 2011 at 1:38 pm

      Great link eve! I knew about Papademos background but was not aware of the other two. They are finally leaving the shadow government and taking direct control. We should be very careful to watch what is going on with our own government.

      • Carl Nemo **==  November 11, 2011 at 5:17 pm

        I believe they already have control of our government that’s why the moniker “Government Sachs” has been used post the sub prime debacle, TARP etc.

        Our bought and paid for Congress along with the duty puppet in the White House dance smartly to their unholy panpipe tunes.

        I firmly believe bloody revolutions will start in Europe eventually spilling over on to our shores once a complete currency meltdown ensues.

        These pencil necked banking mattoids can only push people so far…then boom!

        Carl Nemo **==

  6. Sandune  November 11, 2011 at 1:57 pm

    Bravo Woody! We actually might be able to change the core of our Congress if we put our heads together. I read Lew Rockwell daily. His site is fabulous. I met him in 1998 at a meeting of LP members in Atlanta Georgia with Ron Paul and seversl CATO members. Lew wanted a meeting of the minds between the LP and the GOP. It was a concept almost too good to work. It didn’t.

    The GOP had an agenda of promoting Jesus Christ to all members and many of us were not Christians. I doubt if this could ever work.

    I have been preaching for a third party since 1964. Sadly we may be too far gone with our current congress. We may have to see America fail before we can rebuild our values.

  7. eve  November 11, 2011 at 2:57 pm

    Yes Woody188, we should watch it closely. All we can do is spread the links to various websites and hope the numbers of Americans needed to make a change are reached in time.

    One has to wonder.

    I suppose if we could maybe show these links at halftime during the football …. oh wait.

    And there is the crux of the problem.

    Forgive my sarcasm but until Americans stop acting like Romans (bread and circuses) we’re in for what seems to resemble total financial slavery via fractional reserve banking.

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