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BREAKING

Obama to Ask Congress for Temporary Spending Cuts

News reports say the president seeks short-term fix to avoid looming across the board cuts

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by Lisa Fine

Staff Writer t

Image: AP

President Barack Obama will ask Congress to come up with a temporary package of spending cuts and tax reforms to delay the automatic across the board cuts scheduled to kick in March 1, news reports say.

If action is not taken, the automatic cuts known as the "sequester" could trigger widespread layoffs and slashes to defense programs and domestic spending. A short-term fix would buy time so Congress and the administration can negotiate a long-term deal to reduce the deficit, the Associated Press said.

Obama is expected to make the request Tuesday afternoon, but would leave up to Congress a specific time span or dollar amount for the short-term plan. Finding deficit reductions of up to $85 billion would put off the automatic cuts until the start of the new fiscal year, the AP said.

A short term plan would allow Congress more time to come up with a 10-year plan worth more than $1 trillion in deficit reduction, the AP reports

This wouldn't be the first temporary fix to the problem. The cuts were supposed to kick in on Jan. 1, but were delayed by a fiscal cliff deal reached by Obama and Congress that dealt with taxes and put off decisions on spending cuts.

Via the Associated Press
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Comments (view in Forum)

  • PNWest
    !
    Cut wasteful military spending and raise taxes on the ultra-wealthy. Invest in rebuilding the country's infrastructure. Put Americans to work! Don't drink any of Neo's nasty old bitter tea!
  • Neo_NtheMatrix
    !
    @PNWest - Haven't we already raised taxes on the ultra-wealthy? Haven't we already cut the military spending (you libs claim that's why there was a 4th quarter contraction to the economy last year)? What more do you want? My nasty old bitter tea is the same nasty old bitter tea that made this country great. This used to be a country of few laws and low taxes that allowed those who are willing to take a risk and invest in their own business to be fruitful and successful. Now this country wants to tax and regulate every American to death. Those that survive get targeted like al-Awlaki.
  • PNWest
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    @Neo_NtheMatrix No, no, no. We used to tax the ultra rich at a marginal tax rate that topped out at 95%. That's when we made this nation great. You nasty old tea is turning us into a bunch of haters. We need to get our troops out of the 130+ countries that we currently have them stationed in. Build an armed forces that DEFENDS our great nation not acts as the world's policeman. I'm glad that got that pr%ck al-Awlaki. I want to see us kill more terrorists.
  • drpeeper
    !
    @PNWest Bahahahaha ! I thought that almost trillion Stimulus 4 yrs ago was for Infrastructure. The left's new bumper sticker word.

    Can you think for once, Please? I'm for streamlining. But explain to me how Cutting Military spending (people who work) and 'raise taxes on the ultra wealthy'(people who already pay the majority of taxes and employ people) How does that put Americans to work?

    If you do want to take the ultra wealthy- start with Obama's Buddy Buffett and tell him to drop his opposition to the billion in taxes he owes.

  • View all 92 replies >

  • u
    AceLuby
    !
    Yay, you just solved .000001% of our budget deficit! Good thing we concentrate on ideas like this and don't address the 400 pound gorilla in the room.
  • u
    Libertyiskey
    !
    @AceLuby I understand this doesn't solve a huge portion of our debt or deficit but it deserves attention besides you trying to be an ass about it. It will lower incentive for those wanting to make a career out of being a politician which causes a lot of our debt and deficit cause they get in there and decide to spend money. I never said it was the only thing that needed to be addressed but I said it does need to be addressed, I do think we need cuts all across the board and since I never gave numbers I'd like to know how you came up with that number. Since your making assumptions ill add one of my own, glad to know you support career politicians.

  • View all 7 replies >

  • Neo_NtheMatrix
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    Temporary cuts?$1T over 10 years (for you math challenged liberals, that's $100B a year)? Is obama serious? No, I asked if he is serious. And is he? This is what defines leadership in this failed regime?

    "Oh, I'm not going to suggest what cuts should be made, I'll leave the heavy lifting to Congress. But I will say this, it has to only be temporary so I can put a show on for the American people, so I can lie that I cut spending, although I'm just going to increase it even greater later on."

    What a disgusting regime we have occupying the White House. Totally, totally depressing. If this news doesn't make you sad, it'll make your grandchildren suicidal.
  • Neo_NtheMatrix
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    @AceLuby - obama could make some suggestions. That is, if he doesn't mind the voters knowing what he really stands for. How is it that he can find work for them to do.He should send over some suggestions and let Congress mull it over and tinker with it as they see fit. However, ducking behind making it Congress' responsibility is not showing leadership.
  • u
    AceLuby
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    @Neo_NtheMatrix It is Congress' responsibility and if Obama tried to push something through you would criticize him for acting like a dictator.
  • Neo_NtheMatrix
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    @AceLuby - Isn't he pushing something through with his immigration reform proposals and gun control legislation? Let him pick a side and stand by it. He should outline what he wants, where he'd like to see the cuts happen, and Congress can either go with it, tinker with it, or flat out reject it. obama shouldn't be allowed to thrown rocks and then hide his hands.

  • View all 6 replies >

  • Buzzfriendly
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    Might as well pass around a cup in the house and senate and ask them for a dollar. Most of those clowns have no idea what spending cuts really mean. First thing is some of them need to experience it their personal life to fully appreciate what it means.
  • MarkJM
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    You can tax the rich at 100%, it'll only generate approx.$87 Billion (not even a drop in the bucket to what we owe in national debt). The Defense department has already made drastic cuts and yes they could cut a little more fat (Some DoD agencies are already being proactive in that department). The real glutton of spending here are a combination of domestic programs, CONgressional pay & perks (to include SCOTUS and POTUS), Foreign Aid, and pork-barrel spending (yes it's still WAY out of control). Annual spending budgets account for $3.3 Trillion annually and those numbers go up every year. We take in on an annual basis approx.$2.2 Trillion in revenue (again with the rich taxed at a hypothetical 100% that total would go to $2.28 Trillion). We have a spending problem, not a revenue problem.
  • u
    AceLuby
    !
    Drastic cuts in the defense dept? We're spending $400 billion more on the war machine than we were 10 years ago...

    Also, you're right and wrong about the spending problem and revenue problem. We have both, not enough revenue because not enough people paying taxes (due to the recession job losses) and we're spending more on the social safety net (welfare, UE benefits, etc... due to the recession).

    Get military spending down to 2000 levels, increase taxes on EVERYONE back to 2000's levels, take one single year of military spending and invest in a 3 year infrastructure program to get UE under 5% and in 12 months you have a balanced budget.
  • MarkJM
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    @AceLuby Partially correct on the revenue as we have approx. 50% of Americans who pay zero in income taxes for one reason or another. They should be made to start contributing. And if you ever served a day in uniform you would understand as to how much the military gets paid (here's a clue, it's not that much. Example, an E-6 pay is approx. $5000 below the poverty level).
  • jessejaymes
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    The Military is the only know place on earth where you don't get a discount for buying large lots. If I buy pot I get a discount for buying more. If I buy 2,000 movies for Target I get a discount for buying more. I can buy a hammer of top quality for 30.00. Yet the Pentagon pays 5 times that and more. To claim there is no corruption, graft and kickbacks in the defense spending is to claim that Santa Claus is a gopher.
  • u
    AceLuby
    !
    @MarkJM Those people make $12 an hour or less, mostly HS/College kids, the elderly, and the unfortunate people who have to try and feed a family on $12 an hour, like the people in the military. That 50% makes less money per year than the top 1% (including people who earn money from capital gains). To say there is a revenue problem from the bottom 50% is absolutely laughable.

  • View all 16 replies >

  • Russell797
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    Across the board cuts would be a disaster for the economy. Discretionary cutting with a little intelligence behind it is the way to go. Unfortunately, no amount of cutting will do any good in the longer run, simply because the system is one which requires continuous, never ending growth.
  • u
    BelinKS
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    The problem is that congress did not immediately start working on this. They came in with their own agendas and immediately proposed bill after bill. None had anything to do with our country's fiscal problem except to raise the debt ceiling. This was put off in the first place for congress to start work on it immediately in order to have some thing in place by March. Here we are less than a month from March and congress did not do it! How many times are they going to keep coming up with a temporary plan and extending their dead line. They had no problem voting to give themselves raises in pay, though they made plenty and it just cost our country more money. I think it's time to clear out congress and replace them. Let's see what a Republican president and a republican majority in both houses can do for our country. Yes, we have to wait until the next presidential election, but we can start with congress sooner. As Obama put it. "It's time for a change,". He may have been referring to himself, but what he said holds true. When Obama became president he had a majority in both houses. Two years later he lost the House and only had a senate majority. The only thing he got done with those two years of majority was to do the bailouts and massively increase our debt, and come up with and pass Obamacare(which no one knows if it works). He did not keep his promise to get is out of Iraq and Afghanistan in those first two years, which he could have easily done. He did not have enough in congress to oppose him. A democrat president and congress did nothing but hurt us. Time to give the republicans a chance when the time comes!
  • DARSB
    !
    I was out hunting unicorns the other day when I stumbled across a rational adult politician who didn't want to put the interests of party over people.
  • Dan_Tien
    !
    Sounds like "I can't pay the rent right now, but I will write you a check and if you will just hold it for two weeks you can cash it and it will be good."
  • u
    stimpy
    !
    I say let the the sequester happen. Heck I was all for stomping on the gas and going head first over the so called fiscal cliff. I'm not a wealthy person by any means, but I do know how to make sure my family and I would survive. Beans and taters make a great meal. I think when the dust settled we would have come out better off in the end. Just my feelings folks.
  • mwr
    !
    we can't run our homes and personal spending the way the government does, why can't people understand there is no more money, cuts are not an option, cuts are a reality and a requirement for our nation to survive.
  • u
    AceLuby
    !
    So why are we ignoring the elephant in the room?'Defense' spending has increased $400 billion over the last 10 years and the recession accounts for another $400 billion in spending and loss of revenue. That's almost the entire deficit in two line items yet nobody talks about either. They talk about 'taxing the rich', or 'ending planned parenthood', or 'getting rid of big bird', or 'welfare', or any number of issues that make up .001% of the budget, yet won't even discuss what the real issues are. It's gross.
  • mwr
    !
    @AceLuby, pick up a pen and write your congressman / woman. they dont read this on line rag. Tell them exactly what you think needs to be done.
  • u
    AceLuby
    !
    @mwr I write both of my senators and my congressman (along w/ a few others), fairly regularly. Always get the stock "Thank you for your letter, we will look into your suggestions with serious consideration" BS.
  • mwr
    !
    @AceLuby, i get about the same plus their spam mail once they have my address. i use this site to vent mostly.
  • DebLipsitz
    !
    Time for this endless drama to end. It slashes INCREASED (read NEW) military spending by roughly 50%, which means the military still gets their increases. The "across the board cuts" only reduce spending to what it was in 2009. The real reason all in Washington want to change the automatic process agreed to is that all but one is a millionaire, and THEIR taxes would go up. The tax provisions in the automatic deal automatically negate all tax changes since George W Bush took office.

    That means the deficit would get reduced, and eliminated within a generation, something nearly all in this country want (except politicians and the uber-wealthy), and with a minimum of economic and social pain.

    Time we all ignore the politicians and media claims, and start calling our critters in Congress to tell them what WE want, right now, and as often as we can.
  • u
    Moe_Fugga
    !
    I remember landing in Subic with a couple of buddies and a pocket full of money. We partied for days telling the world "I don't give a damn what anybody thinks". Barry and Michelle remind me of that those wonderful days, drinking in every club, hitting every whorehouse and spending money like we had the keys to the treasury. Following several days of drinking, whoring and doing exactly as we pleased we ran out of money and found ourselves back at our posts with huge hangovers paying dearly for our debauchery. But we earned every ounce of humility..........Barry and Michelle have been partying with the Democratic Party cronies on our money for years and ultimately will skip out on the check in 2016 leaving all of us holding the bag. Todays spending cuts are a politically motivated temporary move to sway some moderate republicans to vote for a huge debt ceiling increase next month. The reality that the average american is faced with increased taxes, exploding prices for consumer goods and fuels and
  • u
    AceLuby
    !
    This is an extremely simplistic view on a very complex economic system. The economy isn't a paycheck and our troubles did not begin Jan 20th 2009.
  • u
    AceLuby
    !
    Our economic plans make me want to vomit. Can't touch anything of substance because the govt has convinced nearly everyone to be scared all the time. How anyone can justify $400 billion a year in extra defense spending while we run trillion dollar deficits is mind boggling.
  • CanadianIndy
    !
    I still think they should just let the automatic cuts kick in. The Reps in the House can pass any bill they want in a panic, but the Senate should just crush any bill that makes it through.

    Force the spending cuts and tax hikes. Once they're in effect, THEN start negotiating. The folks on the hill need motivation and as of yet, they have none apparently.
  • twinertia
    !
    AGAIN: Won't work; fifth (5th)-grade math should tell anyone this fact. Only the populace has enough fiscal clout to pull the fat out of the fire, and they have to corporatize to do it. Wake up to the fact that corporations write tax laws (politicians merely rubber-stamp their meal tickets); the drone has no influence whatsoever in this environment. Vote for fools and liars, work up a sweat.....and watch nothing happen (again).
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