HELENA – U.S. Sen. Max Baucus said Wednesday there is an “excellent chance” that a bipartisan deficit-reduction supercommittee can reach a deal that includes a combination of spending cuts and tax revenue increases.
Observers in Washington D.C. have been increasingly skeptical that the panel, due to act by Nov. 23, can reach its goal of generating at least $1.2 trillion in deficit savings over the coming decade. On the outside, Republicans and Democrats remain at odds on taxes and proposals to cut benefit programs such as Medicare.
Failure to reach an agreement triggers across-the-board budget cuts of more than $1 trillion, shared evenly by defense and domestic programs.
But Baucus told reporters in a conference call that the committee will be able to reach a deal that instead takes a scalpel to the budget cutting problem.
“This is a tough job. We are talking about lots of options. A lot of options in cutting spending. And lots of options in raising revenue. There’s no decision made yet,” Baucus said, adding “revenue is clearly an option.”
The closed-door meetings by the group have led to criticism, but Baucus says they are necessary to keep outside advocacy groups from torpedoing individual proposals. Baucus promised any decisions would be made in public meetings.
U.S. Rep. Denny Rehberg, a Republican, has been among those calling on the group to open its deliberations.
But Baucus said it is not realistic if the group is to reach a deal, which he is “very confident” will happen.
“This committee is committed to an agreement. I think there will be an agreement,” Baucus said. “I am very impressed with the positive, constructive tone. And I think that’s because everyone knows how serious this is.”
Baucus said he prefers an option that does not cut too much immediately, out of fear that strangling the flow of government money into the economy could lead to a second recession. He favors midterm and long-term budget cuts.
Earlier in the day, U.S. Sen. Jon Tester held a teleconference with AARP members — many of whom expressed a great deal of concern that Social Security could be scaled back in some way.
Tester, also a Democrat, said he would oppose any reduction in benefits and believes a “critical mass” in Congress would as well.
“We do have to get the budget deficit dead under control,” Tester said. “But we don’t have to reduce your benefits to make that happen.”
Baucus said he is sensitive to the concern of seniors and others who hear that programs like Medicare could be changed as part of a deal. But the senator said he believes Americans will embrace a deal that is fair because concern about the deficit is so high.
“That is what people at home tell me,” Baucus said. “They want a balanced and fair solution. If we do this, we are going to be stronger. Then Medicare will be stronger. It is real important.”