Decatur, Ala. | Friday, May 24, 2013
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Sequester urgency seems missing
By Jim Kuhnhenn
Associated Press
Charles Dharapak/Associated Press
President Barack Obama speaks about the sequester as he stands with emergency responders, a group of workers the White House said could be affected if state and local governments lose federal money as a result of budget cuts.

WASHINGTON — Ten days before a new deadline for broad, automatic government spending cuts, the sense of urgency that surrounded other recent fiscal crises is absent. Government agencies are preparing to absorb an $85 billion hit to their budgets, and politicians, at least for now, seem willing to accept the consequences.

President Barack Obama, back from a Florida golfing weekend, warned Tuesday that "people will lose their jobs" if Congress doesn't act. But lawmakers weren't in session to hear his appeal, and they aren't coming back to work until next week.

Still dividing the two sides are sharp differences on whether tax increases, which Obama wants and Republicans oppose, should be part of a budget deal.

Obama cautioned that if the immediate spending cuts — known as sequestration — occur, the full range of government will feel the effects. Among those he listed: furloughed FBI agents; reductions in spending for communities to pay police, firefighters and teachers; and decreased ability to respond to threats around the world.

"So far at least, the ideas that the Republicans have proposed ask nothing of the wealthiest Americans or the biggest corporations," Obama said at a White House event against a backdrop of firefighters and other emergency personnel. "So the burden is all on the first responders, or seniors or middle class families."

Aides said Obama is ready to take his case more directly to the public in an effort to pressure Republicans, either by traveling to vulnerable states or, as the White House often does, through local media interviews.

They said neither Obama nor White House officials are now engaged in direct negotiations with Republican leaders.

The spending cuts, however, aren't perceived to be as calamitous as the threatened results of recent fights on the nation's borrowing authority and the "fiscal cliff" that would have cut spending and increased tax rates on all Americans paying income taxes.

Default

Failure to raise the debt ceiling would have left the government with no money to spend on myriad programs and could have precipitated an unprecedented default. The fiscal cliff had the potential of setting back the economic recovery.

In fact, many Republicans now see the automatic cuts in spending as the only way to tackle the federal deficit. Some liberals won't balk either because they want cuts in Pentagon spending. And many Democrats believe the cuts will have to materialize before Republicans agree to some increase in taxes.

"Some Democrats want it because of the defense cuts, and Republicans want it because they want to do anything to cut domestic spending," said Brendan Daly, a former top aide to Rep. Nancy Pelosi, the former House speaker and now Democratic leader. "And politically, it's difficult to oppose because the impact won't be so severe right away."

Democratic consultant Jim Manley, a former Senate leadership aide who periodically consults with Obama officials, added: "Not only do I expect the sequester to kick in, but unfortunately it will take a couple of temporary government shutdowns before Republicans realize they need to sit down and negotiate in good faith."

White House officials said they believe House Speaker John Boehner, R-Ohio, will ultimately relent in his opposition to additional taxes. They said that despite his initial stand against increasing tax rates in December, he eventually allowed a House vote to proceed raising the top rate on the wealthiest taxpayers.

Not this time, he said Tuesday: "The American people understand that the revenue debate is now closed."

House Republicans have proposed an alternative to the broad, immediate budget cuts, targeting specific spending and extending some of the reductions during a longer period of time. They also have said they are willing to undertake changes in the tax code and eliminate loopholes and tax subsidies. But they have said they would overhaul the tax system to reduce rates, not to raise revenue.

Boehner said in a statement following Obama's remarks: "Tax reform is a once-in-a generation opportunity to boost job creation in America. It should not be squandered to enable more Washington spending. Spending is the problem; spending must be the focus."

Reducing deficit

Tuesday's exchanges came as the co-chairs of a bipartisan deficit-reduction commission called for reducing the deficit by $2.4 trillion during the next 10 years, with much of the savings coming through health care changes, the closing of tax loopholes, a stingier adjustment of Social Security's cost-of-living increases and other measures.

The proposal by Republican former Sen. Alan Simpson of Wyoming and Democrat Erskine Bowles, the former chief of staff for President Bill Clinton, calls for about one-quarter of the savings to come from changes in health care programs and another quarter from revenue generated by tax changes.

In their plan, Bowles and Simpson said the automatic cuts scheduled for March 1 are too steep and could set back the economy.

"Sharp austerity could have the opposite effect by tempering the still-fragile economic recovery. In order to protect the recovery, the sequester should be avoided and deficit reduction should be phased in gradually," they wrote.

Obama has proposed about $1.5 trillion in long-term deficit reduction with savings from changes in health care programs, lower cost-of-living adjustments in Social Security and other government benefits, spending cuts and increases in revenue by overhauling the tax system

The White House said any elimination of corporate subsidies or tax breaks would be used to lower rates for corporations to 28 percent and to 25 percent for manufacturers, not to raise revenue.

Under Obama's plan, additional revenue of about $600 billion during 10 years would mostly come from reducing the value of itemized deductions and other tax preferences to 28 percent for families with incomes over $250,000.

Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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10 comments on this item

The REAL problem is that these leeches long ago voted themselves PERMANENT pay and benefits REGARDLESS of whether sequestration, default, or even national bankruptcy takes place. They are absolutely corrupt and beyond redemption. A dead possum has more redeeming value!

first let me the first to agree 100%

The senate and Harry Reid haven't passed a budget in over 4 years.That's the problem.The house has sent a budget to dingy harry 4 straight years and he won't allow the bill out of committee . So without budget constraints we get trillion dollar deficits and that's how Obama has spent 6 trillion dollars in four years with the majority spent the first two years when Ms.(botox) Pelosi was speaker of the house.

second. i hope they dont wonder why congressional approval ratings hover around 10%.

I agree with John Boehner "If we lose a few hundred thousand jobs over this then so be it"

As long as it;s not your job right Casinkoid?

No one gives a crap untill it effects them personally. I hope your job goes first!

cut all the pay in Washington and their plush benefits (remember - they excluded themselves from ObamaCare), then they'll start looking for solutions.

i work in manufacturing and have been layed off several times due to economic conditions. What makes government employees so special that the same thing should not happen to them??????????

A statement from a speech that Obama gave to the Super Committee on November 21, 2011 - "My message to Congress is simple: No. I will veto any effort to get rid of those automatic spending cuts to domestic and defense spending. There will be no easy off-ramps on this one." …..So Mr. POTUS why has your stance changed? He knew this was coming over a year ago and waits until now to change his stance so he can shift the blame to Congress when the automatic government spending cuts start so he can appear as he is looking out for our best interest of the people. He has the mighty mouse syndrome “HERE I AM TO SAVE THE DAY”. This POTUS and his entire Administration has never taken responsibility for anything nor have they ever compromised only wanting to shift blame with lies and smoking mirrors to just divide and conquer. If Mr. POTUS would just spend 10% of the time he spends golfing, vacationing and doing other social media events and would focus it on running this nation we would not be faced with all the current problems.

Layng off 800,000 government employees will boost our economy. Its a shame that the 537 on capital hill could not be included.

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