Recently a Committee of the U.S. Congress failed to agree about how to cope with budget deficit amounting to 1,2 trillion USD. This development is worrying because the U.S. government threatened a massive budget reductions while its debt, according to BBC news station, has now swelled to U.S. $ 15 trillion, wow ... big money.
"After months of hard work, we today conclude that there can be no agreement of both parties to the public before the specified deadline," said Patty Murray and Jeb Hensarling, chairman of the joint special committee of Congress in Washington DC, as quoted by Reuters news agency.
The announcement came after the transaction in the stock market after Wall Street on Monday afternoon. When the special committee failed to agree, means the U.S. government getting ready to face massive budget cuts amounting to U.S. $ 1.2 trillion and automatically apply for ten years, as provided for legislation, which will begin in 2013.
Consisted of six Democrats and six who were ruling Republican opposition politicians, they can not agree about the formula to overcome the deficit.
The problem is one of the Republican objections about the proposed tax increases, especially for the families of the rich. In addition, members of the Democrats refused to cut federal retirement benefits and health care benefits for the people if not accompanied by tax increases.
Formed in August, a special team is nicknamed Super Committee it still had a deadline to Wednesday midnight. But on Monday they had declared it difficult to agree and present a proposal in writing.