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              US Lawmakers Refocus on Debt Deal as Deadline Nears

   by Michael Bowman

   U.S. lawmakers return to work this week focused on broad federal tax
   hikes and deep spending cuts that automatically take effect on January
   1. Signs of concrete progress did not emerge from initial consultations
   between the White House and congressional leaders in search of a
   deficit-reduction deal to avert the so-called "fiscal cliff."
   Democrats and Republicans insist bipartisanship is not dead as
   potentially-devastating austerity measures loom. But the clamor for
   common ground cannot hide sharp partisan disagreements. Most
   Republicans still reject President Obama's call to raise taxes on the
   wealthy.
   And many Democrats reject Republican calls to extract savings from
   programs that provide income and health care for retirees. Democratic
   Senator-elect Elizabeth Warren campaigned on protecting America's
   social safety net.
   "I will not go to Washington and cut Medicare or Social Security
   benefits," she said.
   With weeks to go before the deadline, some Republicans are suggesting a
   stop-gap measure.
   "It would not be hard to come up with a comprehensive agreement this
   month - now in this session - to do it early next year. And push off
   [delay] putting us off the fiscal cliff," said Republican Senator
   Johnny Isakson.
   Democrats reject putting off tough decisions.
   "We will reach a point at the end of this year where all the tax cuts
   expire and we will start over next year," said Democratic Senator Patty
   Murray.
   The mere threat of drastic austerity measures is already having an
   economic impact, according to Federal Reserve Chairman Ben Bernanke.
   "Uncertainty about the fiscal cliff, the raising of the debt limit, and
   how the longer-term budget situation will be addressed appears already
   to be affecting private spending and investment decisions, and may be
   contributing to an increased sense of caution in financial markets," he
   said.
   But doing nothing now might lead to a better deal next year, according
   to budget analyst Stan Collender.
   "I would say there is a better than 60 percent chance that we are going
   to go over the cliff. And we are going to need to do that for everyone
   up on Capitol Hill to have the fortitude to be able to vote for the
   things they might otherwise not vote for," said Collender.
   An end-of-year deal may yet materialize, says political analyst Thomas
   Mann.
   "I still think, ultimately, it has a shot at getting done. But the
   polarization remains, the dissent within each party remains. It will be
   ugly and messy and not just happy times," he said.
   A possible silver lining: no matter what happens, America's
   trillion-dollar federal deficit will likely shrink next year.
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   [1]http://www.voanews.com/content/us-lawmakers-refocus-on-debt-deal-as-
   deadline-nears/1552710.html

References

   1. http://www.voanews.com/content/us-lawmakers-refocus-on-debt-deal-as-deadline-nears/1552710.html