SMRs and AMRs

Saturday, November 26, 2011

The supercommittee failed because Republicans refused to compromise

By Chris Van Hollen,
WashPost
Published: November 24

On Sept. 8, six Democrats and six Republicans sat down to breakfast at the first meeting of the Joint Select Committee on Deficit Reduction. We all knew that congressional gridlock had brought us together, but I arrived with high hopes that we would be able to make the tough decisions needed to address the twin challenges of job growth and deficit reduction. We did not succeed — and a huge opportunity was missed.

Our failure is being cast as the result of both parties refusing to give ground, and attempts at explanation are dismissed as partisan finger-pointing. That is a convenient narrative, but it ignores the facts.

Often in politics there is no objective measure for reasonable compromise. Fortunately, in this case the public has a measuring stick against which to judge competing claims. The recommendations made by the president’s bipartisan National Commission on Fiscal Responsibility and Reform (known as Simpson-Bowles, after the Republican and Democratic co-chairs) provide a model for comparing the major plans offered by both sides during the supercommittee deliberations.

First, consider the ratio of spending cuts to revenue increases in Simpson-Bowles vs. the plans discussed by the supercommittee. As documented by the nonpartisan Center on Budget and Policy Priorities, when you factor in the $900 billion in budget cuts Congress made this year, Simpson-Bowles recommended about $2 in cuts for every $1 in revenue. By comparison, the major Democratic plan reflected a ratio of $6 in cuts for every $1 in revenue. The center noted that the Democratic plan “stands well to the right of plans” offered by Simpson-Bowles and other bipartisan groups. By contrast, the Republican plan fell far short of all other bipartisan plans. Compared with the Simpson-Bowles base line, it relied entirely on spending cuts and actually reduced revenue by permanently locking in tax cuts for the highest-income earners.

Second, Democrats were prepared to make important reforms to entitlement programs. While strongly opposing Republican proposals to end the Medicare guarantee and force seniors into the private insurance market without adequate support, we were prepared to put on the table all the Medicare and Medicaid reforms recommended by Simpson-Bowles. In total, the mandatory health-care savings proposed by the major Democratic plan equaled those in Simpson-Bowles. And when faced with the Republicans’ “cuts only” approach to Social Security, we considered a plan to strengthen that essential retirement security program through a mix of new revenue and reforms — the same approach taken by Simpson-Bowles and other bipartisan groups.

(More here.
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