Washington, D.C. — A bipartisan group of six senators is closing in on what could represent the best chance for tackling a deficit crisis that has forced the government to borrow more than 40 cents of every dollar it spends.
Their plan, still a work in progress, would reduce borrowing by up to $4 trillion over the next decade by putting the two parties' sacred cows on the chopping block. Republicans would have to agree to higher taxes while Democrats would have to accept cuts in popular benefit programs such as Medicare, Medicaid and maybe even Social Security.
There is urgency to their work.
Most Republicans and some Democrats in Congress have said they will not vote to increase the government's ability to borrow without some action addressing the nation's long-term debt. The government is expected to reach its borrowing limit of $14.3 trillion by mid-May. Treasury Secretary Timothy Geithner says steps are being taken to delay until July what would be an unprecedented default on the debt.
Geithner and a growing number of business leaders say a U.S. default would plunge the U.S., and perhaps the world, into a second economic crisis.
Despite opposition from top leaders in both parties, the Senate's Gang of Six is banking on support from many of the 64 senators who wrote President Barack Obama in March urging him to support a comprehensive deficit reduction effort.
"There's a huge appetite for a starting point that's bipartisan," said Sen. Mark Warner, D-Va., one of the six senators, three from each party. "I think the conventional wisdom that says, 'We can punt all of this until after the next presidential election.' I think there's a growing consensus we may not have that long."
The group includes four members of Obama's deficit commission, and its recommendations are expected to closely track the commission's plan for $3 in spending cuts for every $1 in tax revenue increases over the coming decade.