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US CHAMBER urges supercommittee to go for grand deficit deal – The Hill’s On The Money

August 16, 2011

US Chamber urges supercommittee to go for grand deficit deal

By Erik Wasson – 08/16/11

The U.S. Chamber of Commerce on Tuesday urged members of the supercommittee to strike a grand bargain on reducing the deficit. 

Despite pessimism in Washington that the panel will be unable to agree on even a bare minimum of cuts by the Nov. 23 deadline, the Chamber urged the group to overhaul the tax code while undertaking a fundamental reform of entitlements.

But in its statement, the Chamber was silent on the controversial question of whether any revenue should be increased in a big deal, but it did lay out other guidance for how tax reform could be completed.

The business group’s top lobbyist Bruce Josten wrote to the 12 members of the supercommittee, urging them to “reform entitlement programs and fundamentally restructure the U.S. tax code to bring revenue and spending back into alignment.”

The supercommittee is tasked with finding $1.5 trillion in deficit savings, but the Chamber wants it to go for much deeper cuts — an opinion shared by credit rater Standard & Poor’s, which this month downgraded the nation’s credit rating.

“While this magnitude of deficit reduction is a step in the right direction, it would fall far short of fixing the deficit and debt problem America currently faces; it would not stabilize the debt to GDP ratio and would not put this ratio on a downward trajectory; and it would fall far short of achieving a balanced budget,” Josten wrote.

“It alone would likely not prevent future downgrades to the debt rating of the United States. Even with successful implementation, the amount of publicly held debt outstanding by the United States would rise to $16 trillion at the end of 10 years,” he noted.

The Chamber wants the group to address Medicare, Medicaid and Social Security.

via US Chamber urges supercommittee to go for grand deficit deal – The Hill’s On The Money.

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One Comment
  1. August 16, 2011 8:30 PM

    If Tea Party members in Congress prevail there will be no tax increases. The consequence of their refusal to negotiate will result in no “grand bargain” or any other bargain.

    For those Americans who don’t understand the debt deal it’s government by hostage taking. Congress forms a gang of 12 who are supposed to agree on a way to cut the deficit. If the gang fails or congress doesn’t pass what they recommend, then the trigger is pulled and each hostage is shot.

    The hostage for the Democrats is the elderly. The hostage for the Republicans is the military. If a deal fails, then wounded solders and the elderly are out on the street. Is this any way to run a country? Is this what America has come to?

    I think Congress should have used themselves as a hostage. Why didn’t they pass a bill where if Congress doesn’t cut the deficit then they lose their pay? Or why not put their lifetime pension on the table? Here in California if the legislature doesn’t pass a budget on time, then they don’t get paid. Tell Congress to hold themselves hostage. They should put their money on the table – not ours.

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