Fiscal Cliff

D.C. Flummoxed By Looming Budget "Cuts"

Really reductions in the rate of increase, but that's all we got

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Democrats and Republicans in the U.S. Congress are nowhere near a plan to avert $1.2 trillion in spending cuts about two weeks before they are set to begin.

It's the latest in a series of fiscal deadlines created by Congress that in the past two years took the U.S. to the brink of a debt default, a government shutdown and middle-class tax increases that neither party wanted. Unless lawmakers act, the across-the-board spending reductions will begin March 1.

Leaving the cuts in place would shave U.S. economic growth this year by 0.6 percent and cost 750,000 jobs by the fourth quarter, Congressional Budget Office Director Doug Elmendorf said yesterday at a hearing.

About half the cuts would affect defense spending, and military leaders are pressuring lawmakers to avoid them. Allowing the reductions, known as sequestration, to take effect would mean less training for Army personnel and fewer purchases of Navy vessels and Air Force fighter jets, the leaders said.

NEXT: Paul's State of the Union Response Overshadows Rubio's

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  1. “and middle-class tax increases that neither party wanted. “

    BULLSHIT

  2. How about starting cuts with cutting Democrats and Republicans salaries? I doubt that they would approve this step. But it would be a nice gesture. So far, all of the cuts that have been done were pointless. I really do not understand why spending cuts are starting to take place just know. What was the government thinking all of the previous years when it was more logical? So they chose to do this now when we all have enough of 1 hour payday loans, car loans, mortgages, credit cards overdraft. Right, “perfect timing”. The government has 0 logic, its actions are too irresponsible and silly. It does not learn any lessons

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