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4A Daily News – Tuesday, November 22, 2011 WORLD BRIEFING Supercommittee gives up: No deficit-cut deal, setting stage for possible military reductions WASHINGTON (AP) — Congress' supercommittee conceded ignominious defeat Monday in its quest to con- quer a government debt that stands at a staggering $15 tril- lion, unable to overcome deep and enduring political divi- sions over taxes and spending. Stock prices plummeted at home and across debt-scarred Europe as the panel ended its brief, secretive existence with- out an agreement. Republicans and Democrats alike pointed fingers of blame, maneuvering for political advantage in advance of 2012 elections less than a year away. The impasse underscored grave doubts about Washing- ton's political will to make tough decisions and left a cloud of uncertainty over the U.S. economy at the same time that Greece, Italy, Spain and other European countries are reeling from a spreading debt crisis and recession worries. Lawmakers of both parties agreed action in Congress was still required, somehow, and soon. ''Despite our inability to bridge the committee's signifi- cant differences, we end this process united in our belief that the nation's fiscal crisis must be addressed and that we can- not leave it for the next generation to solve,'' the panel's two co-chairs, Sen. Patty Murray, D-Wash., and Rep. Jeb Hen- sarling, R-Tex., said in a somber statement. They added it was not possible to present ''any bipartisan agreement'' — omitting any reference to the goal of $1.2 trillion in cuts over a decade that had been viewed as a min- imum for success. President Barack Obama — criticized by Republicans for keeping the committee at arm's length — said refusal by the GOP to raise taxes on the wealthy was the main stum- bling block to a deal. He pledged to veto any attempt by law- makers to repeal a requirement for $1 trillion in automatic spending cuts that are to be triggered by the supercommit- tee's failure to reach a compromise, unless Congress approves an alternative approach. Those cuts are designed to fall evenly on the military and domestic government programs beginning in 2013, and Defense Secretary Leon Panetta as well as lawmakers in both parties have warned the impact on the Pentagon could be devastating. In reality, though, it is unclear if any of those reductions will ever take effect, since next year's presidential and con- gressional elections have the potential to alter the political landscape before then. The brief written statement from Murray and Hensarling was immediately followed by a hail of recriminations. Senate Majority Leader Harry Reid, D-Nev., said Repub- licans had ''never found the courage to ignore the tea party extremists'' and ''never came close to meeting us half way.'' But Sen. Pat Toomey, R-Pa., who authored a GOP offer during the talks, said, ''Unfortunately, our Democratic col- leagues refused to agree to any meaningful deficit reduction without $1 trillion in job-crushing tax increases.'' Experience the Magic of Christmas in Historic Downtown Red Bluff 35 Boutique & Gift Shops 12 Antique Dealers, Galleries & Jewelers 6 Full Service Home Stores 7 Good Restaurants 50 Service & Professional Businesses Sponsored by Downtown Red Bluff Business Assoc. TEA AND BOUTIQUE Fri., Dec. 2nd 10AM to 3PM 25076 Sycamore Avenue, behind La Corona, Los Molinos 478 Antelope Blvd. Red Bluff 530 529-5466 10% OFF Everything in store Friday & Saturday ONLY November 25th Not including repairs or special orders & 26th November 25th 9AM to 8PM Sat., Dec. 3rd , 2011 , 2011 36th Annual Said Gov. Rick Perry of Texas, a GOP presidential hope- ful, ''It's amazing to what lengths he (Obama) will go to avoid making tough decisions.'' It was unlikely the outcome would materially improve Congress' public standing — already well below 20-percent approval in numerous polls. And the panel's failure left lawmakers confronting a large and controversial agenda for December, including Obama's call to extend an expiring payroll tax cut and unemployment benefits. Democrats had wanted to add those items and more to any compromise, and lawmakers in both parties also face a struggle to stave off a threatened 27 percent cut in pay- ments to doctors who treat Medicare patients. Based on accounts provided by officials familiar with the talks, it appeared that weeks of private negotiations did noth- ing to alter a fundamental divide between the two political parties. Before and during the talks, Democrats said they would agree to significant savings from benefit programs like Medicare, Medicaid and Social Security only if Repub- licans would agree to a hefty dose of higher taxes, including cancellation of Bush-era cuts at upper-income brackets. In contrast, The GOP side said spending, not revenue, was the cause of the government's chronic budget deficits, and insist- ed that the tax cuts approved in the previous decade all be made permanent. The Democrats' ''idea was this was the opportunity to raise taxes,''' said Sen. Jon Kyl of Arizona, the Senate's sec- ond-ranking Republican and a member of the supercommit- tee. ''It didn't matter what we proposed; the price of that was going to be $1.3 trillion in new taxes,'' he added in a CNBC interview, although Democrats made at least two offers that called for smaller amounts of additional tax revenue. Sen. John Kerry, D-Mass., said on MSNBC, ''I have demonstrations outside my office. I've had rallies. I've had unbelievable amount of pushback because we were ready and prepared to put on the table some of those so-called sacred cows.'' Republicans, he said, refused to consider can- cellation of the tax cuts for the wealthy. The talks also were hampered by internal divisions with- in both parties. Republicans offered a plan crafted by Sen. Pat Toomey of Pennsylvania about two weeks ago that included an addi- tional $250 billion in tax revenue through an overhaul of the tax code that included reducing the top tax rate from 35 per- cent to 28 percent. Some Republicans criticized it as a vio- lation of the party's long-standing pledge not to raise taxes. Even some in the GOP leadership, including Senate Repub- lican Leader Mitch McConnell of Kentucky and House Majority Leader Eric Cantor of Virginia, declined to endorse it in public. Egypt's Cabinet offers to resign amid protests CAIRO (AP) — Egypt's civilian Cabinet offered to resign Monday after three days of violent clashes between demonstrators and security forces in Tahrir Square, but the action failed to satisfy protesters deeply frustrated with the new military rulers. The Health Ministry said at least 24 people have been killed and 1,750 wounded in the latest violence as activists sought to fill the streets for a ''second revolution'' to force out the generals who have failed to stabilize the country, sal- vage the economy or bring democracy. Throughout the day, young protesters demanding the mil- itary hand over power to a civilian government fought with black-clad police, hurling stones and firebombs and throw- ing back the tear gas canisters being fired by police into the square, which was the epicenter of the movement that oust- ed authoritarian leader Hosni Mubarak. 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