The “super committee,” a bipartisan body comprised of 12 members of the US Congress, has announced that it failed in its task to cut $1.2 trillion (£762 billion) from the country’s deficit.
The six Republicans and six Democrats announced their failed talks after the closing of the New York Stock Exchange on Monday.
The super committee was created in August, after the country decided to avert defaults on debt payments by raising the debt ceiling and defer budget decisions to the panel.
Without amicable decisions from the bipartisan group, automatic cuts will go into effect from 2013. The cuts are set to come largely from the defense budget, with domestic expenses – with the exception of health care for the elderly and Social Security — being scaled back as well.
In the joint statement released on Monday, the 12 members of Congress said that it was “not possible to make any bipartisan agreement available” after months of intense deliberations.
It went further to say that the panel hopes Congress “can build on the work” done by the committee.
The announcement is cementing the thoughts in many US voters’ minds that the increasingly polarised political teams are unable to work together for the greater good.
US President Barack Obama, a Democrat, has blamed Republicans, saying that there are still too many in Congress “that have refused to listen to the voices of reason and compromise.” He went on to say that he will veto any attempts to stop the automatic cuts.
Republican senators are already working on legislation that would repeal the cuts to the defence budget, looking at cuts across the federal government instead.
Republicans say that Democrats refused to make cuts to benefits programmes for the elderly and poor without raising “job-crushing taxes” by $1 trillion.
Meanwhile, Democrats say that Republicans were to blame for the failure to compromise, as they absolutely refused to consider tax rises for the wealthiest Americans.
The bickering back and forth has left US voters deeply disillusioned in their policymakers, and polls show that Congressional approval ratings are at all-time lows.