As most Americans shift into holiday mode, members of Congress are going back to work this week.
They have some important work to finish before the end of the year.
The fiscal cliff -- a $600 billion combination of tax hikes and spending cuts -- is looming Jan. 1. The congressional "super committee" set the default plan in motion last year when the group's six Democrats and six Republicans couldn't agree on another way to cut the federal deficit.
Members of both parties agree they need to reduce the deficit, but so far they haven't been able to reach a grand bargain.
U.S. Rep. Joe Donnelly, D-Granger, said he expects lawmakers will have "at least a significant portion of a framework of an agreement" complete by New Year's Eve, but the new Congress that convenes in January might need to fill in the details of that deal. If that's the case, he said, Congress could extend current tax rates and spending levels for three months to provide time for members to finalize a solution.
Donnelly said in an interview Monday morning in his South Bend office -- about an hour before he headed back to Washington -- that he's optimistic members of the two major parties will be able to cooperate better now that the 2012 election is over.
"I'm an optimist by nature, so I believe it will be easier to work together," he said. "In my work, I don't care whether you're a Democrat or a Republican, all I want to know is how we can make Indiana stronger and America stronger. I believe now that the elections are over there will be more people with that same attitude."
Rep. Fred Upton, a St. Joseph Republican who was a member of last year's super committee, said lawmakers need to confront the nation's $16 trillion debt "head on." That means a solution that includes spending cuts, tax reforms and changes to so-called entitlement programs such as Medicare and Social Security.
"The fiscal cliff threatens our very economic foundation -- and the wild fluctuations of our financial markets serve as a dire warning," Upton said in a statement. "We have much work to do, and I am pleased to work with (House Speaker John Boehner) and our leaders on crafting a responsible, bipartisan solution."
President Barack Obama has said he believes lower tax rates enacted under former President George W. Bush should be allowed to expire for Americans earning more than $250,000 a year.
Republicans have said raising rates on the top earners would hit business owners at a time when the nation is struggling to add jobs. Donnelly has said he supports extending the lower rates for at least another year.
Sen. Dan Coats, R-Ind., called on the president to work with Congress on a plan that addresses the fiscal cliff by strengthening the economy and putting Americans back to work.
"Raising tax rates on small businesses, as some have suggested, will discourage job creators from hiring and will not solve our fiscal crisis," Coats said in a statement. "To pull us back from the fiscal cliff, we need both parties to come to the table and agree on a balanced plan that will cut massive deficit spending, restructure our tax system and strengthen entitlement programs for the future."
Donnelly, who will join Coats in the Senate in January, said he doesn't like to call programs such as Medicare and Social Security "entitlements" because many people have paid into them throughout their working lives. But he agreed that changes to those programs will be part of the fiscal cliff discussion.
Those changes might include "means testing" to focus the programs on individuals who most need them, stronger efforts to reduce Medicare fraud or using a Mayo Clinic model for Medicare in which patients pay for a course of care instead of each visit.
"I can't say that any of those will be part of (the solution)," Donnelly said, "but my guess is they'll certainly be part of the discussion."
Staff writer Kevin Allen:
kallen@sbtinfo.com
574-235-6244
They have some important work to finish before the end of the year.
The fiscal cliff -- a $600 billion combination of tax hikes and spending cuts -- is looming Jan. 1. The congressional "super committee" set the default plan in motion last year when the group's six Democrats and six Republicans couldn't agree on another way to cut the federal deficit.
Members of both parties agree they need to reduce the deficit, but so far they haven't been able to reach a grand bargain.
U.S. Rep. Joe Donnelly, D-Granger, said he expects lawmakers will have "at least a significant portion of a framework of an agreement" complete by New Year's Eve, but the new Congress that convenes in January might need to fill in the details of that deal. If that's the case, he said, Congress could extend current tax rates and spending levels for three months to provide time for members to finalize a solution.
Donnelly said in an interview Monday morning in his South Bend office -- about an hour before he headed back to Washington -- that he's optimistic members of the two major parties will be able to cooperate better now that the 2012 election is over.
"I'm an optimist by nature, so I believe it will be easier to work together," he said. "In my work, I don't care whether you're a Democrat or a Republican, all I want to know is how we can make Indiana stronger and America stronger. I believe now that the elections are over there will be more people with that same attitude."
Rep. Fred Upton, a St. Joseph Republican who was a member of last year's super committee, said lawmakers need to confront the nation's $16 trillion debt "head on." That means a solution that includes spending cuts, tax reforms and changes to so-called entitlement programs such as Medicare and Social Security.
"The fiscal cliff threatens our very economic foundation -- and the wild fluctuations of our financial markets serve as a dire warning," Upton said in a statement. "We have much work to do, and I am pleased to work with (House Speaker John Boehner) and our leaders on crafting a responsible, bipartisan solution."
President Barack Obama has said he believes lower tax rates enacted under former President George W. Bush should be allowed to expire for Americans earning more than $250,000 a year.
Republicans have said raising rates on the top earners would hit business owners at a time when the nation is struggling to add jobs. Donnelly has said he supports extending the lower rates for at least another year.
Sen. Dan Coats, R-Ind., called on the president to work with Congress on a plan that addresses the fiscal cliff by strengthening the economy and putting Americans back to work.
"Raising tax rates on small businesses, as some have suggested, will discourage job creators from hiring and will not solve our fiscal crisis," Coats said in a statement. "To pull us back from the fiscal cliff, we need both parties to come to the table and agree on a balanced plan that will cut massive deficit spending, restructure our tax system and strengthen entitlement programs for the future."
Donnelly, who will join Coats in the Senate in January, said he doesn't like to call programs such as Medicare and Social Security "entitlements" because many people have paid into them throughout their working lives. But he agreed that changes to those programs will be part of the fiscal cliff discussion.
Those changes might include "means testing" to focus the programs on individuals who most need them, stronger efforts to reduce Medicare fraud or using a Mayo Clinic model for Medicare in which patients pay for a course of care instead of each visit.
"I can't say that any of those will be part of (the solution)," Donnelly said, "but my guess is they'll certainly be part of the discussion."
Staff writer Kevin Allen:
kallen@sbtinfo.com
574-235-6244
