Lawmakers on the Joint Select Committee on Deficit Reduction announced on November 21 that they will not reach an agreement to cut the federal budget deficit by $1.2 trillion over the next decade. Their failure to compromise in the areas of taxes and spending means that the budget will undergo automatic cuts in defense and nondefense spending beginning in 2013.

Under the Budget Control Act of 2011, which was the topic of C&L's August newsletter, the deficit panel had until November 23 to reach an agreement. Lawmakers immediately began blaming the opposing political party for the panel's inability to find a solution over the last four months. Democrats said GOP lawmakers refused to end the Bush-era tax cuts for the super-wealthy, while attempting to repeal the Medicare program for the elderly. Republicans said Democrats wanted to impose $1 trillion in tax increases on families and employers.

Senate Majority Leader Harry Reid, D-Nev., said he will oppose any efforts to roll back the sequester in 2013 and increase defense spending. He called on lawmakers to reach a balanced plan. White House spokesman Jay Carney told reporters that Congress still has plenty of time to meet its responsibility and act before the sequestration takes effect.