Dems reject Republican offer on reducing deficit

Associated Press

WASHINGTON

Deadline nearing, the deficit-reduction talks in Congress sank toward gridlock Friday after supercommittee Democrats rejected a late Republican offer that included next-to-nothing in new tax revenue. Each side maneuvered to blame the other for a looming stalemate.

The panel faces a deadline of next Wednesday, the day before Thanksgiving, and lawmakers on both sides stressed they were ready to meet through the weekend in a last-ditch search for compromise.

But there was little indication a breakthrough was likely in a day of closed-door meetings.

Elsewhere at the Capitol on Friday, the House rejected a Republican proposal to amend the Constitution to require a balanced budget, a proposal that would have conceded Congress was unable to fight mounting federal red ink unless its hand was forced.

In the midst of the urgent effort to accomplish that deficit-cutting goal, Republicans disclosed they had outlined an offer on Thursday for about $543 billion in spending cuts — leaving Medicare, Medicaid and Social Security untouched — and $3 billion in higher tax revenue.

Democrats have long demanded that Republicans agree to significant amounts of higher taxes on the wealthy as part of any deal, and they quickly rejected the offer, according to officials in both parties.