Contact Us
Make My Homepage

Supercommitte Fails to Reach Deal, Now What? [AUDIO]

Flickr User VintageREcall

Despite talks through the weekend, the congresssional committee that was supposed to reduce the deficit by $1.2 trillion over the next decade has not come to an agreement. The stalemate could trigger automatic spending cuts across the board in 2013 and could cause another downgrade of the nation’s credit rating.

But, Chairman of the Finance Department at Rider University Maury Randall said a lot hinges on next year’s election. “Who knows what they’re going to do? Will they go through with the cuts?” he said. “Are people going to go on one side or the other, do they want a different President who will adopt different policies? A lot of questions remain and the American people have to decide what they want to do.”

The cuts would be evenly divided between defense and domestic spending. The 12-member panel’s deadline for a final vote is Wednesday. In order to stave off automatic spending cuts, the committee must propose ways to reduce deficits by at least $1.2 trillion over 10 years. At least 7 of the 12 members must approve a plan in order to send it to the House and Senate for a vote.

“The fact that automatic cuts would be put off until the outcome of the next election means there is a great deal of uncertainty,” said Randall. “Will they continue the lower Bush tax rates or will they expire as scheduled and send those tax rates up? With questions like these looming, it makes it more difficult for companies to plan since they don’t know exactly what to plan for at this point.”

“Had something been decided, businesses would know what was coming and could plan accordingly,” Randall said. “Between this uncertainty and the negative news coming out of Europe, it’s making it a tough time for the stock market as well.”

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Best of NJ101.5

Recommended For You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for New Jersey Insiders quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive New Jersey Insiders contests, events, coupons, presales, and much more delivered to you for FREE.