Remember earlier this year when America was held hostage as President Obama and leading members of the Republican Party fought over the debt ceiling?
STORY: Hip Hip Hooray! Obama And John Boehner Strike A Debt Ceiling Deal
In those constant back and forth tension driven debates, we would always hear that the supercommittee would fix everything when the time came.
Well the time is now and the supercommittee has to come up with a deficit-reduction plan. As of today the committee announced that the panel has failed to reach an agreement.
So now what does that mean?
According to President Obama, when news broke that the committee failed to reach a deal:
“If we don’t act, taxes will go up for every American starting next year. I’m not about to let that happen. And I will veto of any effort to get rid of these automatic cuts to domestic & defense spending”
The bipartisan group is made up of 12 members of both the U.S. House of Representatives and U.S. Senate, were chosen to identify ways to reduce the national debt by $1.2 trillion over the next 10 years.
STORY: Things That Won’t Change If Debt Limit Is Raised Or Stays The Same
But what, who and where is the supercommittee? What are their responsibilities and what are they overseeing? Now that they have failed what’s going to happen?
There are many complex questions for an issue that most Americans have no clue about. Here is your 411 guide to understanding the supercommittee.
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EPIC FAIL!
Now that the supercommittee has failed, the Congress’ approved spending on defense programs will be reduced from 10 percent in 2013 to 8.5 percent in 2021, with savings of $454 billion.
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Reductions!
Congress-approved spending on non-defense programs would be reduced from 7.8 percent in 2013 to 5.5 percent in 2021, saving about $294 billion.
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Medicare!
Most Medicare spending would be reduced by 2 percent a year, with savings of $123 billion.
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They Talking Billions!
The Center on Budget and Policy Priorities says that by 2013 the cuts to mandatory programs include about $10.8 billion in Medicare payments to providers and insurance plans and about $5.2 billion to other programs such as farm price supports.
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A Billion Less!
The Pentagon was about to get $700 billion in 2021 but with cuts already written under the Budget Control Act and future across-the-board cuts, that would be reduced by more than $100 billion.
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Name Game!
They go by many names, including “Supercommittee” or “Super Congress,” but the official name is the Joint Select Committee on Deficit Reduction.
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Born Out Of Budget!
The Supercommittee was created under the Budget Control Act of 2011.
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How Much?
The Budget Control Act of 2011was passed by the U.S. Congress in August 2011 to increase the nation’s $14.294 trillion debt ceiling, in order to avoid a potential default.
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The Chosen Ones!
The Supercommittee consists of six members of the House and Senate.
The House members were chosen by Speaker John Boehner and Minority Leader Nancy Pelosi. The Senate members were chosen by Majority Leader Harry Reid and Minority Leader Mitch McConnell.
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Responsibilities!
The Supercommittee’s job is to find ways to reduce the national debt by $1.2 trillion before the end of 2011. If the panel’s plan is approved by Congress, the debt ceiling can be increased by the same amount.
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Let’s Make A Deal!
If the Supercommittee strikes a deal it would be placed on a fast track through the House and Senate.
The Budget Control Act of 2011 immediately raised the nation’s debt ceiling by $400 billion.
