GOP counters; sides still far apart on deficit-reduction plan

WASHINGTON (AP)

Republicans on Congress' deficit-reduction supercommittee outlined a plan Wednesday that includes spending cuts but none of the increases in tax revenue sought by Democrats, completing an initial exchange of offers that left the two sides far apart despite weeks of secret talks.

Officials also said a Democratic proposal on Tuesday and the GOP counter-proposal 24 hours later both included a provision to slow the annual cost-of-living increases in future Social Security benefits, suggesting it could become part of any compromise that might emerge.

The Republican offer calls for somewhat more than $2 trillion in deficit savings over a decade, according to officials in both parties. Less than half of that amount would come from increases in items such as Medicare premiums, the sale of public lands and airport fees - measures that increase government revenue without changing personal or corporate taxes.

Spending cuts include about $500 billion from Medicare over a decade and another $185 billion from Medicaid, these officials said.

By contrast, Democrats want $1.3 trillion in higher tax revenue, a similar amount in spending cuts and enough other savings elsewhere in the budget to reduce deficits by more than $3 trillion over the coming decade while financing a $450 billion jobs bill along the lines that President Barack Obama is recommending.

The officials who described the rival approaches did so on condition of anonymity, saying they were not authorized to provide details of the committee's confidential discussions. In private, each side also disparaged the other, providing yet another indication that the panel's deliberations have not shown significant progress.

Still, the exchange marked a quickening in the pace of activity by the committee after dozens of hours of closed-door meetings, and with time running out, senior leaders in both parties are becoming more involved. Another committee meeting was set for Thursday.

The panel of six Republicans and six Democrats has until Nov. 23 to recommend deficit savings of $1.2 trillion. But in fact, most if not all of the decisions must be made by early next month to give the nonpartisan Congressional Budget Office time to render precise estimates on their costs on future deficits.

Whatever the committee recommends must be approved by both houses of Congress in December if lawmakers want to avoid automatic spending cuts of $1.2 trillion across a range of federal programs.