Charles Dharapak, File, Associated Press
WASHINGTON — A bipartisan group of six senators is closing in on what could represent the best chance for tackling a deficit crisis that has forced the government to borrow more than 40 cents of every dollar it spends.
Their plan, still a work in progress, would reduce borrowing by up to $4 trillion over the next decade by putting the two parties' sacred cows on the chopping block. Republicans would have to agree to higher taxes while Democrats would have to accept cuts in popular benefit programs such as Medicare, Medicaid and maybe even Social Security.
There is urgency to their work.
Most Republicans and some Democrats in Congress have said they will not vote to increase the government's ability to borrow without some action addressing the nation's long-term debt. The government is expected to reach its borrowing limit of $14.3 trillion by mid-May. Treasury Secretary Timothy Geithner says steps are being taken to delay until July what would be an unprecedented default on the debt.
Geithner and a growing number of business leaders say a U.S. default would plunge the U.S., and perhaps the world, into a second economic crisis.
Despite opposition from top leaders in both parties, the Senate's Gang of Six is banking on support from many of the 64 senators who wrote President Barack Obama in March urging him to support a comprehensive deficit reduction effort.
"There's a huge appetite for a starting point that's bipartisan," said Sen. Mark Warner, D-Va., one of the six senators, three from each party. "I think the conventional wisdom that says, 'We can punt all of this until after the next presidential election.' I think there's a growing consensus we may not have that long."
The group includes four members of Obama's deficit commission, and its recommendations are expected to closely track the commission's plan for $3 in spending cuts for every $1 in tax revenue increases over the coming decade.
Its other two Democrats are Sen. Dick Durbin of Illinois, the second-ranking Democratic leader, and Sen. Kent Conrad of North Dakota, the Budget Committee chairman. The Republicans are Sens. Tom Coburn of Oklahoma, Mike Crapo of Idaho and Saxby Chambliss of Georgia.
The six have met in private for several months, even as House Republicans and Obama developed more partisan plans that have little chance of being enacted into law because of Washington's divided government.
House Republicans passed a nonbinding plan in April that calls for reducing annual deficits by a total of $6.2 trillion over the next decade. It includes no tax increases but calls for transforming Medicare from a program in which the government directly pays medical bills into a voucher-like system that subsidizes the purchase of private insurance plans.
Obama has outlined a plan to reduce borrowing by $4 trillion over the next 12 years. His plan includes $1 trillion in tax increases and is less specific about how he would cut benefit programs.
Vice President Joe Biden is to begin leading a series of bipartisan talks this week on reducing the debt. The Gang of Six senators wants its plan to be part of the discussion.
The senators' work is rooted in a simple political reality: Getting anything actually passed into law given the present balance of power in Washington requires both Democrats and Republicans to embrace proposals that make each uncomfortable. An approach that leaves politically challenging topics off the table simply won't make a dent in deficits averaging $1 trillion a year or so over the upcoming decade.
"A Republican plan will not pass. A Democratic plan will not pass," Chambliss said. "It is going to require locking arms and jumping off the building together."
- Have you seen 'Age of Ultron'? Here are 50...
- Floyd Mayweather wins decision over Manny...
- LA man builds small home for homeless lady
- Britain has a new princess — and...
- Governor, legislators leave 'baggage' behind...
- 'Avengers' sequel is second biggest US opener...
- 18 of the best made-up words from children's...
- Here's a quiz to test your Star Wars...
- Opposing sides of same-sex marriage... 125
- Outcome of same-sex marriage case hard... 54
- Religious liberty issues dog Supreme... 44
- Vermont Sen. Bernie Sanders: 'I am... 40
- Rage to relief in Baltimore as 6... 40
- Defending the Faith: Going up to Jerusalem 25
- Latest on police-custody death: Curfew... 22
- Michelle Singletary: Stop picking on... 21