The Congressional Super Committee, tasked with agreeing to $1.2 trillion in cuts and revenue over 10 years, has failed to reach an agreement. Democrats offered a package of spending cuts and new tax revenue levied on the rich, while Republicans offered only spending cuts.
Due to the lack of a deal, automatic cuts established in the bill that created the Super Committee will be triggered, starting in 2013. This actually gives Congress another year to come up with a solution. President Obama has now stated that he will veto any attempt to circumvent the automatic cuts.