The Supercommittee is running out of time. They have to produce a deal by Thanksgiving and that's only a week away. By all accounts the Democrats refuse to reform Medicare and the Republicans won't go for soak-the-rich income tax hikes. The Republicans did offer a $200 billion "revenue increase" (aka tax hike) but that wasn't enough for Democrats.
So what happens after Thanksgiving?
Ans: nothing.
So what happens in 2013?
A little bit of tummy suck in. The 2013 spending plan is right now $1047 billion. The suck in would reduce that to $953 billion. A horrible 9 %. Oh woe. The sky will fall. And this world shaking spending cut is just a plan. Congress usually goes over plan by the time the fiscal year is over.
With the Feds borrowing 40 cents of every dollar spent, a 9% spending reduction ain't gonna save a thing.
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