Hoyer: Grand bargain still possible on deficit

Rep. Steny Hoyer (Md.), the Democratic whip, said Tuesday that a sweeping, $4 trillion deficit-reduction deal remains possible this year despite the mounting barriers against it.

“Reaching a larger target of $4 trillion is desirable – I use the word essential,” Hoyer told reporters in the Capitol. “I don’t believe it’s dead.”

{mosads}Hoyer was quick to concede, however, that some congressional leaders have shown little enthusiasm for pursuing the grand bargain approach.

“If we don’t pursue it enthusiastically and with intent, then I think its chances of happening are less,” Hoyer said.

The 12-member bipartisan supercommittee is charged with proposing at least $1.5 trillion in deficit savings over the next decade. If it fails, then $1.2 trillion in cuts – divided equally between defense and non-defense programs – automatically kick in. 

Hoyer said those figures are significant, but the country’s soaring debt begs Congress to set the bar even higher.

“$1.2 trillion, while a very substantial sum of money, is less than the challenge demands,” he said. “I would hope that the 12 members would rise above, as I said, any partisan political instincts that they might have and focus solely on policy and the future well-being of Americans and America.”

He might not want to hold his breath. 

One member of the supercommittee, Sen. Jon Kyl (R-Ariz.) raised eyebrows last month when he suggested that entitlement benefit cuts – opposed by Democrats – and tax hikes – opposed by Republicans – are simply too controversial for the panel to address before its pre-Thanksgiving deadline.

“If either outside forces or the president or even members of Congress were to force the committee members into situations where you have to compromise our principles, that’s going to be very, very hard to do,” Kyl said.

“On the other hand, if we can find ways to achieve a $1.5 trillion in savings that do not force us to compromise our principles, then maybe we’ll have an easier job of doing that.”

Hoyer hammered that notion, arguing Tuesday that it’s “absolutely essential” for the supercommittee to adopt a balanced approach “dealing with revenues, dealing with entitlements and dealing with discretionary spending both on the security side and the non-security side.” 

“I’m disappointed in comments that some make that everything’s not on the table,” Hoyer said. You cannot get from where we are to where we need to be without addressing all items of government expenditure.”

The supercommittee’s deadline is Nov. 23.