BOSTON (CBS) – The debt “super committee” is officially throwing in the towel, announcing it could not reach a deal to cut the deficit.
WBZ NewsRadio 1030’s Laurie Kirby spoke to Rep. Jim McGovern about the failed deal:
The Dow dropping 249 points tells you what the markets thought of this latest example of DC gridlock.
And as a result, according to Congressman Ed Markey, the failure to reach a deal will trigger potentially “devastating” cuts in Massachusetts.
Or, maybe not.
Watch Keller @ Large:
“We do not believe that the wealthiest people in America should get another tax cut at the expense of people on fixed incomes, elderly, people on medicaid and others having to ante up more,” said Rep. Markey.
Republicans claim they were prepared to have the rich pay more, but Democrats weren’t serious about curbing deficits and debt.
Whoever you believe, their failure is supposed to now trigger automatic cuts.
But Markey, who wrote a report claiming the automatic cuts would gut federal funds we rely on for our crucial health care and research sectors, said he now expects a bipartisan retreat from those cuts.
“Jon Kyl and John McCain have already signaled that they’re gonna walk away from the automatic cuts for defense spending. So, if that’s the case, then the same thing will probably happen with regard to the cuts that will impact on social programs,” said Markey.
Congress has plenty of time to scuttle those cuts, which were part of the debt-ceiling deal last summer, since they were conveniently timed to occur after next year’s election.
WBZ NewsRadio 1030’s Lana Jones spoke to Gov. Patrick about President Obama’s role in the failed deal:
But, they have less than six weeks to deal with a 50% hike in the social security tax and the end of emergency unemployment benefits, and both are due to happen on New Year’s Day.