As the supercommittee charged with reducing the deficit works on a plan
that both cuts at least $1.2 trillion over ten years and can pass
Congress, recent shifts by Republican leadership may signal the return
of the “grand bargain” that President Obama and House Speaker John
Boehner (R-OH) had originally tried to negotiate.

Earlier reports indicate that Boehner has softened his line on tax increases in the final deal, while The Hill
reports that Senate Minority Leader Mitch McConnell (R-KY) “has made an
about-face in recent days and now favors a huge deficit-reduction
deal.”

“At the beginning of this week, Senate GOP and
Democratic sources said McConnell appeared to favor a $1.2 trillion
package out of the deficit-reduction supercommittee… A $4 trillion
deal has gained more popularity in the Senate GOP conference this week
as lawmakers have become convinced that Obama wants the
deficit-reduction supercommittee to fail.”

House Speaker John Boehner (R-OH) acknowledged that any bipartisan agreement on debt reduction will need to include some new tax revenue, CBS News reports.

Said Boehner: “I think there is room for revenues, but I think there clearly is a limit to the amount of revenues that are available.”

“The comment was significant because Boehner and other Republican leaders have repeatedly insisted that tax increases are off the table, and most Republicans in the House and Senate have signed a ‘taxpayer protection pledge’ vowing not to raise taxes.”

As the supercommittee approaches its November 23 deadline, by which time
it must approve a plan that cuts the deficit by $1.2 trillion to avoid
across-the-board cuts, The Hill notes the political pressures on the supercommittee’s 12 members.

“The
panel’s members are confronting risk on all sides. For Senate freshmen
like Pat Toomey (R-Pa.) and Rob Portman (R-Ohio), and ambitious House
Democrats like Chris Van Hollen (Md.) and Xavier Becerra (Calif.),
signing onto any agreement could alienate segments of their party’s base
and threaten their advancement in leadership… Some political analysts
note, however, that the members of the supercommittee are insulated by
their solid standing both within their party caucuses and in their home
districts and states, which may have contributed to their selection in
the first place.”

A Newsweek investigation found about five dozen of the most fiscally conservative Republicans “trying to gobble up the very largesse they publicly disown, in the time-honored, budget-busting tradition of bringing home the bacon for local constituents.”

“That’s what I find absolutely bizarre: Republicans moralizing about deficits. That’s like an arsonist moralizing about fire safety. These guys have zero credibility.”

— Vice President Joe Biden, quoted by the Orlando Sentinel, speaking to Florida Democrats.

First Read notes that with the Super Committee’s Thanksgiving deadline fast approaching, “the presidential race might actually take a back seat – at least for a few weeks — to what’s happening in Washington.”

“Of course, the same dividing lines that caused Boehner and Obama from failing to come to a grand bargain are still there. And now with political finger-pointing taking place among committee members themselves, this seems destined to end in stalemate. What’s worse: There’s talk the deadline of Nov. 23rd is not real. In fact, even the threatened automatic cuts, which wouldn’t go into effect until 2013, seem less real today. Who doesn’t envision Congress saying, ‘Well, no agreement, the automatic cuts will take place in 2013’ — only to have the lame duck Congress after the ’12 election react to the election results and go in another direction?”

Bloomberg: “A record 49% of Americans live in a household where someone receives at least one type of government benefit, according to the U.S. Census Bureau. And 63% of all federal spending this year will consist of checks written to individuals for which the government receives currently no services, the White House budget office estimates. That’s up from 46% in 1975 and 18% in 1940.”

“Those figures will climb in coming years. The 75 million baby boomers have only begun their long march into retirement, while President Obama’s health-care overhaul will extend insurance coverage to more than 30 million additional people.”