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Pelosi names House Democrats to deficit super committee; compromise hope dim

August 11, 2011

And then there were 12.

House Minority Leader Nancy Pelosi today completed the new Joint Select Committee on Deficit Reduction, aka the Super Congress, by appointing Democratic Reps. Xavier Becerra of California, Chris Van Hollen of Maryland and James Clyburn of South Carolina.

All three men are current or former members of Pelosi's leadership team. They also have a history of protecting entitlement programs.

Clyburn is the Assistant Democratic Leader, making him the third-ranking member of House Democratic Leadership. He was part of Vice President Biden's deficit commission and has years of experience on the House Appropriations Committee.

Becerra is the current Democratic Caucus Vice Chair and a senior member of the House Ways and Means Committee. He also served on the Simpson-Bowles Commission.

Van Hollen is House Budget Committee Ranking Member and previously served on Ways and Means. He is responsible for the House Democrats' budget proposal and was part of the Democratic contingent in the Biden deficit reduction effort.

They now join:

  • House Republicans Jeb Hensarling (committee co-chair) of Texas, Dave Camp of Michigan and Fred Upton of Michigan;
  • Senate Democrats Patty Murray (the other co-chair) of Washington, John Kerry of Massachusetts and Max Baucus of Montana; and
  • Senate Republicans Jon Kyl of Arizona, Pat Toomey of Pennsylvania and Rob Portman of Ohio.

Compromise or clash? In naming her panelists, Pelosi called for a "grand bargain" that reduces the deficit by addressing our entire budget, while strengthening Medicare, Medicaid and Social Security.  "Our entire Caucus will work closely with these three appointees toward this goal," said Pelois, "which is the goal of the American people."

Good luck with that lofty deficit reduction goal, Rep. Pelosi.

With apologies to Agatha Christie, the phrase "12 Little Indians" comes to my mind. Looking at the previous and expected political positions of the dozen members of Congress, I see any chance of compromise being killed soon after the panel convenes its first meeting.

Maybe I'm being too cynical. (That type of outlook has already raised some questions from financial advisers this week.)

Perhaps the special super panel members will listen to each other, give and take, exchange ideas and come to a more-in-the-middle position when it comes to cutting spending and taking in some tax revenue. Such a process could be advanced if the committee agrees to Pelosi's request that it do its work in the open. Sen. Patrick Leahy (D-Vt.) also has requested such hearing transparency.

But I suspect that after some opening niceties, we'll see a replay of the painful debt ceiling process. Most of these super committee members, after all, have already been part of previous bipartisan deficit and budget panels that ended up with nothing.

So get ready for some late hours as the Thanksgiving break approaches. Note to Capitol Hill staffers: Stock up on turkey TV dinners.

And don't be surprised to see the automatic spending cuts kick in when all is demagogued and (not) done.

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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