No deal: The Deficit Super­com­mit­tee returns with a hung jury.

The Deficit Super­com­mit­tee has returned from their month­s­long nego­ti­a­tions with…nothing. No deal. Only fin­ger­point­ing and blame.

Keep in mind that the Super­com­mit­tee needed to find a net sav­ings of three per­cent in the bud­get in order to achieve its goal. We’re not talk­ing about huge changes here. Just three per­cent. And they failed, not because find­ing that amount to cut is hard, but because find­ing com­mon ground in a hyper­par­ti­san Con­gress is impossible.

So what now?

Absent new leg­is­la­tion passed by a major­ity in both houses, and signed by Pres­i­dent Obama (or passed over Obama’s veto), the fol­low­ing will happen:

  • The Bush tax cuts will expire, and income tax rates will return to the Clin­ton levels.
  • The defense and domes­tic pro­gram bud­gets will be cut by equal amounts.

Repub­li­cans want to avoid the first two, and Democ­rats want to avoid the third. As it stands today, it’s pretty clear that the House won’t pass any leg­is­la­tion that excludes an exten­sion (most likely a per­ma­nent one) on the Bush tax cuts.

Obama says he will veto any attempts to get around the auto­matic cuts. And it’s likely that the Sen­ate wouldn’t allow them to make it to his desk anyway.

This makes for a dif­fi­cult new year, but makes par­ti­san bick­er­ing the order of the day for 2012. Repub­li­cans will blame Democ­rats for inflex­i­bil­ity, and Democ­rats will say the same of Republicans.

Mean­while, Obama will hold this up as an exam­ple of a “do-​​nothing Con­gress”, echo­ing Pres­i­dent Truman’s reëlec­tion campaign.

How do you think this will play out? Will Repub­li­cans find a way to get the tax cut exten­sion through? Will Democ­rats find a way to get domes­tic pro­grams funded despite fund­ing reduc­tions? Will this become Obama’s path to reëlec­tion, fol­low­ing in Truman’s foot­steps? What will hap­pen to the mem­bers of Con­gress a year from now?