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