–Senate Minority Whip Kyl Says Democrats Are Demanding Large Tax Hikes
–Sen. Kyl: Dems Offered ‘Nothing New’ In Deficit Panel Talks
–Democratic Senator Kerry: GOP Fixated On Extending Bush Tax Cuts
–Sen. Kerry: Democrats Put ‘All Sacred Cows’ On Table

By John Shaw

WASHINGTON (MNI) – Leading members of Congress’ deficit reduction
panel said Sunday there is little hope they will be able to reach an
agreement in the coming days.

Republican members of the panel blamed Democratic intransigence,
saying Democrats would not overhaul entitlements unless massive tax
increases were attached to these changes.

Democrats responded by saying the GOP members of the panel demanded
the Bush era tax cuts be extended as part of any deficit reduction deal.

On NBC’s “Meet The Press,” Senate Minority Whip Jon Kyl said
Democrats were “never willing to do anything” on entitlement reform
unless it was coupled with punishing tax increases.

Kyl is a Republican member of the deficit reduction committee.

Kyl gave little hope that the deficit panel will agree on a plan to
achieve $1.2 trillion in ten year but savings, but said “one way or
another” the $1.2 trillion in savings will be achieved.

He said if the deficit reduction panel fails, $1.2 trillion in
savings will be achieved in across-the-board spending cuts.

Kyl said that overall number of deficit reduction is sacrosanct,
but said he would support an effort to reduce cuts in defense programs
and shift them to other parts of the budget.

“I think there is a way to work around that,” Kyl said.

“There is going to be $1.2 trillion in savings,” he said.

Kyl said this committment to achieve $1.2 trillion in savings
should not “force a downgrade” of the U.S.’s debt or cause major
disruptions in financial markets.

He said the American public deserves to be angry at “our (Congress)
inability to tackle these tough problems.”

Also appearing on “Meet the Press,” was Democratic senator John
Kerry, also a member of the deficit panel.

He said Kyl’s account of the panel’s deliberations was “patently
not true.”

He said Democrats were willing to put every “major sacred cow” on
the table for possible budget cuts, but wouldn’t do so if it also
required accepting the full extension of the very costly Bush era tax
cuts.

“We are not a tax cutting committee,” Kerry said.

Kerry said the GOP intransigence on any tax increase and the
Republican demand for deep tax cuts has derailed the panel.

“We could have a deal in the next two hours,” if Republicans were
more reasonable, Kerry said.

The Joint Select Committee on Deficit Reduction is charged to
submit a report to Congress by Wednesday that reduces the deficit by
between $1.2 trillion and $1.5 trillion for the 2012 and 2021 period.

The final package, if one is agreed to by the majority of the
panel’s 12 members, must be voted on without amendment by the House and
Senate by Dec. 23, 2011.

If the panel fails to agree on a spending cut package or Congress
rejects its plan, a budget enforcement trigger would secure $1.2
trillion in budget savings through across-the-board cuts.

The cuts would be equally divided between defense and non-defense
programs but would exempt Social Security, Medicaid and low-income
programs.

** Market News International Washington Bureau: (202) 371-2121 **

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