Dems on deficit panel reject GOP offer

WASHINGTON -- Deadline nearing, the deficit-reduction talks in Congress sank toward gridlock Friday after supercommittee Democrats rejected a late Republican offer that included next-to-nothing in new tax revenue.

Now, each side is maneuvering to blame the other for the expected stalemate.

The panel's deadline is Wednesday, and lawmakers on both sides stressed they were ready to meet through the weekend in a last-ditch search for compromise.

But there was little indication a breakthrough was likely in a day of closed-door meetings.

In the midst of the urgent effort to accomplish their deficit-cutting goal, Republicans disclosed they had outlined an offer on Thursday for about $543 billion in spending cuts -- leaving Medicare, Medicaid and Social Security untouched -- and $3 billion in higher tax revenue.

Democrats have long demanded that Republicans agree to significant amounts of higher taxes on the wealthy as part of any deal, and they quickly rejected the offer, according to officials in both parties.

"Where the divide is right now is over taxes, and whether the wealthiest Americans should share in the sacrifices," said Sen. Patty Murray of Washington, the panel's Democratic co-chair.

One Republican leadership aide familiar with the offer said it included only provisions that had drawn bipartisan support in talks throughout the year. This aide also noted it included President Barack Obama's proposal to reduce the tax break used by purchasers of corporate jets.

It was unclear where the talks would turn next, but the GOP proposal suggested the discussions had effectively moved into a range of savings far below the $1.2 trillion the committee has been seeking.

It also appeared Republicans were jettisoning a plan for $300 billion in higher tax revenue, an offer that exposed internal GOP divisions when it was presented two weeks ago. It also has failed to generate momentum for a compromise among Democrats.

Meanwhile, Gov. Andrew M. Cuomo, who faces a projected gap of between $3 billion and $3.5 billion in next year's budget, sent a letter Friday to the New York delegation urging them to try to protect New York as the supercommittee seeks to slash the federal deficit.

Cuomo said the state gets nearly $40 billion in federal funding each year, representing about 30 percent of the state budget, and cuts would hurt road repairs, agricultural aid, health care and other programs.

With Tom Brune