Files, 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.
"We've made enormous progress in that group. And I hope that we are able to announce an agreement soon," Conrad said on "Fox News Sunday." He added: "If we don't, we're simply not going to be relevant because this debate marches on."
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.
- From 0.3 to 81.1: What percentage of each...
- 2 on missing Malaysia jet used stolen EU...
- Terrorist attack? Mechanical failure? Reasons...
- Oil slicks found in hunt for Malaysia jet...
- FBI to investigate disappearance of a...
- Rutgers faculty council pushes for school to...
- Report: Ukraine base in Crimea under siege
- No longer loyal to Boy Scouts of America,...
- Obama administration allows 2-year... 28
- Putin: Russia has right to use force in... 22
- Disney ending funding to Boy Scouts in... 21
- Half of millennials more likely to lean... 14
- Former IRS official Lois Lerner again... 11
- Early auditions for 2016 Republican... 10
- Rutgers faculty council pushes for... 10
- New Ukraine prime minister: Crimea will... 9