'Supercommittee' Failure?

Congressional committee tasked with big budget cuts was unable to compromise.
1:36 | 11/21/11

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Transcript for 'Supercommittee' Failure?
-- failure that could affect every American. The super committee charged with the reducing the deficit by more than -- in dollars in the wake of last summer's debt limit crisis is expected to admit defeat today. ABC's John Karl joins has more on what went wrong what it means for all of us and John they never really got close. No George really -- colossal an embarrassing failure Democrats and Republicans on the committee just couldn't agree they deadlocked over Democrats insisted that the spending cuts. -- balanced with tax increases on the wealthy so now assuming failure today we have one point two trillion dollars an automatic cuts. That hit virtually everything domestic programs and -- Medicare and Medicaid will get hit. The Pentagon we'll get hit hard about half the cuts go to the Pentagon these effects taking effect. These cuts taking affected 2013. -- Defense Secretary Panetta says these will be devastating. Cuts to the Pentagon -- -- -- hollow force George he says. That he will be forced to cut the size of American ground forces to the smallest level since 1940. Could be a huge change another big change China's it. This committee is expected to work on extending that payroll tax cut think that extended last year also unemployment benefits -- in December. Now it's very possible that you'll see. Taxes go up for everyone in January. That's right now the congress will come back after Thanksgiving and try to deal these two issues but George here's what you're looking at. You're looking at the long term unemployed seeing their benefits going away at the end of the year those long term unemployment benefits simply ending and -- a tax increase of 2%. For all American workers that would go effect on January for huge impact Jon Karl thanks very much.

This transcript has been automatically generated and may not be 100% accurate.

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