The congressional super committee negotiating a possible deficit reduction agreement announced Monday it has failed to reach a deal, according to CNN.
The announcement came after last-minute talks on what one participant billed as a “new idea” in an effort to salvage an agreement.
Markets dropped as news spread of the panel’s expected failure. The Dow Jones industrial average fell 248 points Monday, with a minor recovery after being down more than 300 points earlier in the afternoon.
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To stave off automatic spending cuts starting in 2013, the super committee had been tasked with finding ways to cut deficits by at least $1.2 trillion over 10 years.
Senator Barbara Boxer released the following statement on the announcement by the Joint Select Committee on Deficit Reduction:
“These talks failed for one reason – Republicans refused to ask millionaires and billionaires to pay their fair share. Now we must follow the example of the Clinton years, when we balanced budgets and created 23 million new jobs by cutting smartly, investing wisely and ensuring that the wealthiest did their part.”
Congressman Buck McKeon also issued a statement:
“It appears that the joint select committee will not meet their deadline to avoid sequestration. The men and women on that committee had a tough job with no easy choices before them.
“Now, unfortunately, America’s military is facing cuts that will devastate the armed forces and force us to break faith with service members. I do not accept that outcome.
“I will be introducing legislation in the coming days to prevent cuts that will do catastrophic damage to our men and women in uniform and our national security. Our military has already contributed nearly half a trillion to deficit reduction. Those who have given us so much, have nothing more to give.
“Secretary Panetta has said he doesn’t want to be the Secretary who hollows out defense. Likewise, I will not be the armed services chairman who presides over crippling our military. I will not let these sequestration cuts stand.”