Three Senate Democrats Named to Deficit Panel

WASHINGTON (Reuters) – Democratic senators Dick Durbin, Max Baucus and Kent Conrad will serve on a presidential commission to tackle the country’s stubborn budget deficits, Senate Majority Leader Harry Reid said on Tuesday.

The trio of senior Democrats became the first members to be named to the panel after it was set up last week by President Barack Obama.

Durbin is the No. 2 Democrat in the Senate, while Baucus chairs the tax-writing Finance Committee. Conrad, who chairs the Budget Committee, has led the push to set up the commission, which would examine ways to bring the country’s spending in line with its revenues.

“We need to begin making the tough choices now so that policies can be phased in once the economy has recovered,” Conrad said in a statement.

Three House Democrats will also serve on the panel, as well as three Republicans from either chamber. They have not yet been named.

The panel will be chaired by Democrat Erskine Bowles, a former chief of staff to President Bill Clinton, and former Republican Senator Alan Simpson.

The two helped craft a budget deal in the 1990s that led to budget surpluses before unfunded wars, tax cuts and the worst recession in 70 years led to deficits that are now higher relative to the economy than any time since World War Two.

The panel will have broad leeway to consider tax hikes or spending cuts to come up with a strategy to balance the budget, excluding interest payments, in five years.

Its recommendations would have to be approved by Congress, which could be reluctant to take the unpopular steps necessary to stem the tide of red ink amid heavy lobbying by outside groups.

The U.S. Senate last month voted down a proposal to set up a similar commission.

Republican leaders have said they support spending cuts and oppose tax hikes to trim the deficit, while Democrats could be reluctant to cut popular entitlement programs like the Social Security retirement program.

By REUTERS
(Reporting by Andy Sullivan, Editing by Chris Wilson)