WASHINGTON, Feb. 2 (UPI) -- A grand bargain to tame the hemorrhaging U.S. budget deficit by cutting entitlement program benefits and raising taxes seems unlikely, lawmakers say.
Even with a hugely popular new president in office, it would still require "political suicide" for both Democrats, who would have to agree to trim costly social programs, and for Republicans, who would have to acquiesce to a major tax hike, to tame budget deficits that are spiraling out of control, The Washington Post reported Monday.
As the U.S. Senate opens debate Monday on a $900 billion plan to pull the nation out of recession, analysts say the cost of the effort would send this year's budget deficit soaring toward a record $1.4 trillion, or nearly 10 percent of overall economic output, the newspaper said.
White House officials have been talking to lawmakers about setting up a process to tackle the deficit and holding a "fiscal responsibility summit" by early March. But a proposed task force to revamp Social Security, Medicaid, Medicare and the U.S. tax code has gained little support from Democrats, the Post quoted lawmakers saying.
Republicans, meanwhile, are balking at a proposal to raise taxes on the wealthy while lowering the corporate tax rate.
