GOP rejects Dems offer in 'super committee,' negotiations 'deadlocked' over taxes
October 26th, 2011
03:53 PM ET
3 years ago

GOP rejects Dems offer in 'super committee,' negotiations 'deadlocked' over taxes

Washington (CNN) - Democrats on the so-called "super committee" proposed during a closed meeting Tuesday a $3 trillion plan designed to slash the federal deficit but Republicans swiftly and decisively rejected it because it relied heavily on tax increases, according to several congressional sources from both parties.

One top Republican aide described the Democratic offer as "outrageously absurd" and a "non-starter," and a sign the super committee may ultimately fail. But this is the first time in the months since the committee began its negotiations that any group in the committee has offered a specific plan.

Democratic sources told CNN that at the meeting Tuesday the ten-year plan was presented to the 12 member committee by Sen. Max Baucus, D-Montana, the Finance Committee chairman. A majority of the 6 Democrats on the super committee supported the proposal but sources declined to say which member or members disagreed.

It would include cuts to entitlement programs like Medicare and Medicaid, which the Democratic sources described as a major concession from their party. In return Republicans were asked to go along with between $1.2 and $1.3 trillion in new tax revenue.

Congressional Republicans have been nearly uniform in their opposition to new taxes, particularly during the economic downturn, and Sen. Jon Kyl, R-Arizona, made that point during Baucus's presentation.

The GOP aide accused Democrats of leaking details of their offer to the press and said it is a clear sign Democrats believe the super committee will fail.

"It's because they know, or they think, or they believe this committee is going to fail," said the GOP aide who insisted on anonymity in order to discuss the highly sensitive negotiations. "So they need a marker saying this is where we are."

The GOP aide went on to say the development is a sign that the talks are "deadlocked" over the issue of whether or not tax increases should be part of a deficit reduction plan.

A Democratic aide close to the committee rejected the accusation that Democrats are the source of the leak.

“This is a serious proposal that includes real concessions by Democrats and the kind of balance that Americans support in a deal. It’s time for Republicans to face the fact that getting this done is going to mean setting their pledges to Grover Norquist aside, dropping the gimmicks, and making concessions on real revenues,” a Democratic aide said.

Democratic sources made a point to say that Tuesday's offer in the "super committee" was an attempt by Democratic members to reach for a 'big deal' and go beyond the $1.2 trillion in deficit savings required by the August debt ceiling agreement.

Multiple Democratic sources characterized the Democratic pitch as picking up where negotiations for a "grand bargain" between President Obama and House Speaker John Boehner left off when talks fell apart in late July. During those negotiations the two leaders were discussing a deal that included more than $400 billion in Medicare and Medicaid cuts over 10 years and increased tax revenue of between $800 billion and $1.2 trillion.

The committee faces a fast-approaching deadline of November 23rd to reach agreement and vote on a deficit reduction deal of $1.2 trillion or more to avoid across-the-board "trigger" cuts that would go into effect in 2013.

Also see:

Biden's office complains about reporter's conduct in hallway interview

Paul Ryan to slam Obama for 'politics of division'

Still 'plenty of time' for a deal, 'super committee' co-chair says


Filed under: Congress • Debt • Deficit • Deficit commission • Democrats • Republicans
soundoff (41 Responses)
  1. Jake

    screw the GOP! they will continue to do nothing for the next 13 months while they wait and try to re-gain power. They will lose, and meanwhile the entire country loses!

    October 26, 2011 03:56 pm at 3:56 pm |
  2. Wire Palladin, S. F.

    Those of you on social security, better start saving up your money, because the republicans really want government to shut down. It is going to be a long 13 month until the republicans are replaced.

    October 26, 2011 03:58 pm at 3:58 pm |
  3. Dan W.

    The Democrats shoudl just walk away and let the automatic cuts to the Pentagon take place. With the corporate welfare gravy train from the Pentagon reduced, Republican Party funders will put pressure on Republicans to make a deal.

    October 26, 2011 04:01 pm at 4:01 pm |
  4. a in austin

    What else is new? Their approval rate is now at 9%. I think they should all be fired or not get paid until they get something done!

    October 26, 2011 04:02 pm at 4:02 pm |
  5. chill

    If there are no tax revenue increases, then there is no solution. It has to be part of the equation. I don't understand why the Republican free marketeers are so bent on maintaining economy-distorting tax breaks for favored industries. Wipe out the special gifts, drop the rate such that there is a net increase in revenue. We all played a role in digging this hole and now we all, inclduing the GOP must give ground if we are to pay our debts off. Why is that so hard for them to comprehend?

    October 26, 2011 04:03 pm at 4:03 pm |
  6. Sniffit

    "heavily"

    No. It balanced $3T in cuts with $1T in revenue increases, found via loophole closures, etc. The GOP is going to refuse even $1 of revenue increases. Their goal is to kill the federal gov't, period. They are interested in fixing the deficit or getting rid of the debt only to the extent that, well, no federal gov't = no deficit and no debt. You might want to do some actual journalism CNN and report on what CBO's drector, Doug Elmendorf, testified to before Congress with respect to the types of policies in the proposals put forth by Obama and the Dems. He's testifying in general terms to avoid any appearance of endorsing a particular plan, party or person, but his advice on things like spending in the short term to stimulate the economy and making the cuts and other budgertary fixes in the long term...or the BENEFITS to the economy of raising revenue v. making massive spending cuts to programs relied upon by the middle class...it's all supporting what Obama and the Dems are trying to do. Is that why you're avoiding reporting on it and instead focusing on helping the GOP/Teatrolls sell nonsense like flat tax systems and complete idiocy like "raising taxes actually decreases gov't revenue" (yes, Cowboy Fonzie dogwhistled that idea yesterday when supporting his so-called tax plan).

    October 26, 2011 04:09 pm at 4:09 pm |
  7. Kenny

    If the members of Congress could not work together as a whole body, what in GOD's name would make some Americans think that a few of them would do it. They all had their marching orders when they were appointed and they are all serving with the knowledge that the automatic cuts are going to take place. Right now both sides are trying to figure out ways to lay the blame on the opposition. When mom and dad hit a situation like this, they cut back on their spending and one or both of them goes out and gets a partime job to bring in more revenue. The government should be no different. They should cut spending and raise additional revenues and the only way to raise additional revenue is through taxes.

    October 26, 2011 04:11 pm at 4:11 pm |
  8. GOP = Greed Over People

    The GOP deadlocked over taxes?

    Really? Simply amazing...

    October 26, 2011 04:11 pm at 4:11 pm |
  9. Sniffit

    Doug Elmendorf, director of CBO, in testimony before the "super committe":

    “Extending [the Bush tax cuts] had a negative effect on reducing deficits, and a positive effect of keeping marginal tax rates lower and thus encouraging work and saving...In our estimates, THE NEGATIVE EFFECTS OF THE EXTRA DEBT WERE LARGER THAN THE POSITIVE EFFECTS OF LOWERING MARGINAL TAX RATES."

    Does the GOP care that the gov't's top budgetary advisory council's expert opinion contradicts their ideology and was based on facts, evidence, historical record, etc.? No. Why? Because their goal is to kill the federal gov't and get it out of the way of their plans for theocracy, plutocracy, corporatocracy and "taking America back" so they can make sure it stays "a white people country." Just ask Pat Buchanan...he explains it all in his new book.

    October 26, 2011 04:14 pm at 4:14 pm |
  10. d

    I am truly sickend by these gop d bags...how do they sleep at night. how can they look anyone in the eye and say they are working for our country? all they do is lie to the people...sick bastids! shame on them!

    October 26, 2011 04:15 pm at 4:15 pm |
  11. ConservaFASCISTS/TEAliban/TEAhadists

    3 trilly is alot of money and the fascists TEApublicans are oppossed to it because they want to protect the top 1%. Hey you morons: WE ARE THE 99% AND YOU ARE FIRED!!!! With the likes of Sen. Kyl, you should have known these fascists weren't considering revenue increases. The trigger will be pulled and the revolution will begin.

    OBAMA/BIDEN 2012
    E. WARREN 2012

    October 26, 2011 04:16 pm at 4:16 pm |
  12. Ain't life strange?

    At the risk of sounding redundent... they are not tax INCREASES... it's the elimination of the tax CUTS. Where does the GOP expect to get the money to reduce the deficit if there is no tax cut eliminations and only cutting spending. Sounds like the same GOP mantra... "on the backs of the the poor and middle class." Listen... my income is at a point where if I had to give up the Bush tax cut... and I believe myself to be middle class... to make OUR country financialy stable, then every American citizen should be willing to do the same. The GOP is increasing taxes on the poor and middle class by cutting spending but not raising taxes.... because in the end it will be the bottom 99% that pays that price for those spending cuts.

    October 26, 2011 04:18 pm at 4:18 pm |
  13. GonzoinHouston

    There is no way this committee can reach a decision. The Republicans don't dare agree to anything that includes tax increases, and the Democrats don't dare agree to anything that doesn't. After the cuts take affect, both sides will start quietly replacing the spending while blaming one another for the failure.

    October 26, 2011 04:19 pm at 4:19 pm |
  14. Russ

    Ok, heard coming from the Super Committee meetng room: Democrats....here's a plan that the majority of the American people support. Republicans....does that include the bajillionaries? Democrats....of course not you morons they want more money not less. Republicans....then NO NO NO NO NO NO NO.

    October 26, 2011 04:29 pm at 4:29 pm |
  15. Sniffit

    "The Democrats shoudl just walk away and let the automatic cuts to the Pentagon take place. "

    In court, you always have to be careful to make sure you build and preserve the record for later. Similarly, in the court of public opinion, you have to make sure you preserve the historical record. The Dems are doing the right thing: making the proopsals dictated by the facts, evidence, already existing historical record, expert opinions/professional consensus among experts, etc., not just solely the dictates of an ideology that rejects and rationalizes away all facts, evidence, etc., contrary to itself, as the GOP/Teatrolls are doing. It may be painful now, but the only way for the country to progress beyond all this is to have a good record of who wanted to do what, what actually got done and how it all turned out. Once the growing pains associated with the demographic shifts in this country are over, and the GOP/Teatroll freakout accompanying them has died down into sullen acceptance of the unavoidable, we'll be able to look back and say I FREEKIN TOLD YOU SO.

    October 26, 2011 04:31 pm at 4:31 pm |
  16. Robert

    So, back in AUGUST when it was announced that they were going to do this 'stupor' committee, my initial response was: Well, looks like everything is going to take a 10% cut... Then I see this. Guess what!!

    October 26, 2011 04:39 pm at 4:39 pm |
  17. The Real Tom Paine

    People need to realize the GOP is NOT results-driven or oriented: rather, they are ideologically drive. You can rpesent all the evidence in the world to them that we need new revenue, and that cuts alone won't achieve this, but they will not accept it.

    Do you want results, or do you want to craft reality to suit your outlook? I'll take results any day, but the GOP won't. They won't stop until they have destroyed our government because they are so convinced the Private sector knows best, and the aspiring John Galts of this world need to be liberated from the burden of having a conscience. Government serves as an inconvenient reminder that there are greater needs in society than their own arrogant self-interest.

    October 26, 2011 04:42 pm at 4:42 pm |
  18. The Greedy Old Pigs have declared class war on US!

    The GOBP deathcult becomes ever more obviously mere tools for the 1% who seek to return the US to economic feudalism. Caring only for the greedy and not the needy is not the basis for a viable political party. Nor is refusing to ackknowledge that it policies of deregulation and tax cuts for the ultrarich are proven policy failures. OWS!

    October 26, 2011 04:44 pm at 4:44 pm |
  19. Independent Voters

    Republican are a disaster for our country and majority american say tax the rich.
    Democrat please dont give in to the republican we going to vote them out of the office.

    Republican does not belong in our country.

    October 26, 2011 04:52 pm at 4:52 pm |
  20. watto3502

    REPUBLICANS/CONSERVATIVES SOLDOUT TO GROVER NORQUIST!
    Grover Norquist is a lobbyist. America, google Mr. Norquist and findout more!

    How disgusting it has become that Americans can't work together in solving the problems of this great nation. The "deadlocked" in Washington is symbolic of the American society. Citizens need to find a way to discuss issues beyond those vices that divide America. Liberals are willing to compromise unlike their Republican or conservative counterparts who have soldout to lobbyists.

    October 26, 2011 04:53 pm at 4:53 pm |
  21. Bob

    The GOP won't stop until they destroy this country. Every GOP'er should go home and get kicked in the balls by his mother.

    October 26, 2011 05:06 pm at 5:06 pm |
  22. easydoesit

    Why has no one made mentiom of the democrats that oppose this "plan" by any one posting comments.

    October 26, 2011 05:12 pm at 5:12 pm |
  23. Floyd

    What part of this do Democrats not understand?! The folks on Medicare/Medicaid have nothing left to give! They will sacrifice us just so they can pretend they are compromising with "nonstarter" ideas from republicans proposed in bad faith?! Message to the Democrats, STOP SELLING US OUT. Time to get some candidates in office with backbone. these gutless dems are cowering in front of the GOP schoolyard bullies. NO MORE COWARDS IN OFFICE.

    October 26, 2011 05:13 pm at 5:13 pm |
  24. Handofdoom

    Obama and the Democrats are the two worst Jokes ever played on the U.S Citizens in the history of the U.S !

    October 26, 2011 05:15 pm at 5:15 pm |
  25. Felipe

    Why does the GOP hate America? They'd rather see if collapse and fail than compromise on tax revenue. This is more than class warfare on their part; it's treasonous.

    October 26, 2011 05:16 pm at 5:16 pm |
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