Government spending cuts may be here for good
WASHINGTON (AP) — The spending cuts are here to stay if you believe the public posturing Sunday.
The Senate's Republican leader Mitch McConnell called them modest. House Speaker John Boehner isn't sure the cuts will hurt the economy. The White House's top economic adviser, Gene Sperling, said the pain isn't that bad right now.
So after months of dire warnings, Washington didn't implode, government didn't shut down and the $85 billion budget trigger didn't spell doom. And no one has a tangible proposal for rolling back those cuts.
"This modest reduction of 2.4 percent in spending over the next six months is a little more than the average American experienced just two months ago, when their own pay went down when the payroll tax holiday expired," McConnell said.
"I don't know whether it's going to hurt the economy or not," Boehner said. "I don't think anyone quite understands how the sequester is really going to work."
And Sperling, making the rounds on the Sunday news shows, added: "On Day One, it will not be as harmful as it will be over time."
Both parties cast blame on the other for the automatic, across-the-board spending cuts but gave little guidance on what to expect in the coming weeks. Republicans and Democrats pledged to retroactively undo the cuts but signaled no hints as to how that process would start to take shape. Republicans insisted there would be no new taxes and Democrats refused to talk about any bargain without them.
"That's not going to work," said Sen. Kelly Ayotte, R-N.H. "If we're going to increase revenue again, it's got to go to the debt with real entitlement reform and real tax reform when you actually lower rates. ... I'm not going to agree to any more tax increases that are going to go to increase more government."
All of this comes ahead of a new, March 27 deadline that could spell a government shutdown and a debt-ceiling clash coming in May.
Boehner said his chamber would move this week to pass a measure to keep government open through Sept. 30. McConnell said a government shutdown was unlikely to come from his side of Capitol Hill. The White House said it would dodge the shutdown and roll back the cuts, which hit domestic and defense spending in equal share.
"We will still be committed to trying to find Republicans and Democrats that will work on a bipartisan compromise to get rid of the sequester," Sperling said.
Obama has phoned lawmakers but it isn't clear to what end. Boehner and McConnell said they had a productive meeting with Obama on Friday, but it didn't yield a deal.
"Well, no one can think that that's been a success for the president," said Mitt Romney, Obama's unsuccessful rival in November's election. "He didn't think the sequester would happen. It is happening."
Obama and the Republicans have been fighting over federal spending since the opposition party regained control of the House of Representatives in the 2010 midterm elections. The budget cuts were designed in 2011 to be so ruthless that both sides would be forced to find a better deal, but they haven't despite two years to find a compromise.
The $85 billion in cuts apply to the remainder of the 2013 fiscal year, which ends Sept. 30. But without a deal they will continue slashing government spending by about $1 trillion more over a 10-year period.
McConnell spoke to CNN's "State of the Union." Boehner was interviewed on NBC's "Meet the Press." Sperling appeared on ABC's "This Week," NBC and CNN. Ayotte appeared on ABC. Romney was a guest on "Fox News Sunday."
The Senate's Republican leader Mitch McConnell called them modest. House Speaker John Boehner isn't sure the cuts will hurt the economy. The White House's top economic adviser, Gene Sperling, said the pain isn't that bad right now.
So after months of dire warnings, Washington didn't implode, government didn't shut down and the $85 billion budget trigger didn't spell doom. And no one has a tangible proposal for rolling back those cuts.
"This modest reduction of 2.4 percent in spending over the next six months is a little more than the average American experienced just two months ago, when their own pay went down when the payroll tax holiday expired," McConnell said.
"I don't know whether it's going to hurt the economy or not," Boehner said. "I don't think anyone quite understands how the sequester is really going to work."
And Sperling, making the rounds on the Sunday news shows, added: "On Day One, it will not be as harmful as it will be over time."
Both parties cast blame on the other for the automatic, across-the-board spending cuts but gave little guidance on what to expect in the coming weeks. Republicans and Democrats pledged to retroactively undo the cuts but signaled no hints as to how that process would start to take shape. Republicans insisted there would be no new taxes and Democrats refused to talk about any bargain without them.
"That's not going to work," said Sen. Kelly Ayotte, R-N.H. "If we're going to increase revenue again, it's got to go to the debt with real entitlement reform and real tax reform when you actually lower rates. ... I'm not going to agree to any more tax increases that are going to go to increase more government."
All of this comes ahead of a new, March 27 deadline that could spell a government shutdown and a debt-ceiling clash coming in May.
Boehner said his chamber would move this week to pass a measure to keep government open through Sept. 30. McConnell said a government shutdown was unlikely to come from his side of Capitol Hill. The White House said it would dodge the shutdown and roll back the cuts, which hit domestic and defense spending in equal share.
"We will still be committed to trying to find Republicans and Democrats that will work on a bipartisan compromise to get rid of the sequester," Sperling said.
Obama has phoned lawmakers but it isn't clear to what end. Boehner and McConnell said they had a productive meeting with Obama on Friday, but it didn't yield a deal.
"Well, no one can think that that's been a success for the president," said Mitt Romney, Obama's unsuccessful rival in November's election. "He didn't think the sequester would happen. It is happening."
Obama and the Republicans have been fighting over federal spending since the opposition party regained control of the House of Representatives in the 2010 midterm elections. The budget cuts were designed in 2011 to be so ruthless that both sides would be forced to find a better deal, but they haven't despite two years to find a compromise.
The $85 billion in cuts apply to the remainder of the 2013 fiscal year, which ends Sept. 30. But without a deal they will continue slashing government spending by about $1 trillion more over a 10-year period.
McConnell spoke to CNN's "State of the Union." Boehner was interviewed on NBC's "Meet the Press." Sperling appeared on ABC's "This Week," NBC and CNN. Ayotte appeared on ABC. Romney was a guest on "Fox News Sunday."
In 2012, the U.S. will spend around $220 billion in net interest on its debt, according to the Congressional Budget Office â a figure that is expected to spiral ever higher in coming years.
Cutting government spending is good. Tell the Democrats to keep cutting.Â
So be it... the Left had the complete inability to reign in spending cuts. While Conservatives on Jan 1st agreed to a small tax increase. (note: who is flexing here?) Now let's consider the Federal Gov't and how it is poised to set a record for revenue.Â
According to historical tables compiled by the White House Office of Management and Budget, the government has never collected more than the $2.6 trillion it collected in 2007, meaning that if CBOâs projection is correct, it will set a new record for revenue collection in 2013.
This projection could undercut a key argument made by the White House that any balanced approach to deficit reduction must include more federal revenue in the form of âtax reform.
 http://cnsnews.com/news/article/cbo-federal-revenue-set-record-2013Â
Our new secretary of state just pledged 450 mil to "our friends" in egypt----hmmm seems I remember most of the street riots were pretty anti american there? Will we ever learn that our culture is too different to get along there and just let them do whatever it is they do without our help/support/interference while own country suffers...
@BES-DAS We are buying the FRIENDSHIP !
@scychan@BES-DAS"We are buying the FRIENDSHIP"
Considering the multitude ways the Bush administration worked overtime to destroy any good will towards this nation, using money may well be one of the few options we have left.Â
And do you REALLY want the ill will of countries like Egypt, and what that might mean towards Israel? Fact is, "buying" friendship is a lot cheaper than another war.
Or do you really like to see our people living on the streets ?
We have enough problem in our own nation and they wasteÂ
our money over there and turn around they lick our ass out ?
That's why...we must take care of our own people first beforeÂ
we can help others.Don't forget.....Katrina Victims still living inÂ
trailer houses,and New Jersey storm victims are waiting in theÂ
lines too !!!! Money just can't buy everything !!!!!!
We could cut spending dramatically by curtailing foreign aid, especially to countries who hate us and and have any ties to Al Qaeda. Secondly, why doesn't our government demand something in return for OUR efforts and expense to save oil-rich countries, i.e. for the Iraq war. Why haven't we demanded oil in return for the billions of $$$ we have spent to supposedly ward off Al Qaeda in Iraq? Why is it always the US who always gives taxpayers' and borrowed money to other countries? This just doesn't make any sense.Â
Put America First, you politicians!. Cut foreign aid, cut your own salaries for life, plus free benefits.
Getting off the Government Teet. Welcome to the real world.
@Nightshift You folks sure have a obsession with teets
Didn't read the article, but good. Keep the cuts coming. Something about currently spending double what Clinton did in his last year in office, rubs me the wrong way.
So, can we quit calling it a "Recession" and begin calling it what it really is; a "Depression"?
@Glassman You need to study up on what a depression really is.
@factchekr @Glassman UMM during the 1930's depression unemployment was 10% . The U6 have been around 15-20% for a few years now. maybe you should study up on what a depression is .
@Maynard G Krebbs
Anyone who is currently saying that what we in the U.S. have been/are going through in general now is worse than (or even at all close to) what they went through during the Great Depression has very little if any real credibility left at all.
@Maynard G Krebbs@factchekr@GlassmanActually, between 1930 and 1940 the unemployment level was mostly in a range from 15% to over 20%.
http://en.wikipedia.org/wiki/Great_Depression
And if you actually think THIS has been a "depression", think again. It wasn't even close.
@factchekr 6 years into a depression and you think he needs to study?Â
@factchekr @Glassman don't allow facts to get in the way of good drama
"This modest reduction of 2.4 percent in spending over the next six months is a little more than the average American experienced just two months ago, when their own pay went down when the payroll tax holiday expired," McConnell said.
EXACTLY !!!!!!!! Any properly run household/business/ non-profit etc. should be able to "survivie" this "cut".
I blame those banned plastic bags...
I am confused. the cuts for the remainder of this fiscal year is $43B. We are giving Egypt $450B. Send them zero. put $43B towards the "cuts" and actually save the other $400B. Works for me .
@Maynard G Krebbs I thought we assigned 250 MILLION to Egypt? Way too much, IMO, but about 1/2000 of the amount you seem to believe we are giving them.
@Maynard G Krebbs Ditto
@shamrock178Â @Maynard G Krebbs Double Ditto! Add to that, equal cuts to ALL foreign aid, along with the same amount to politicians from the president on down, to THEIR salaries and benefit packages; and include all the retired/past politicians who are getting their salaries and benefits for life because they voted that in for themselves, years ago........ Sincerely, A dreamer.
Good, now maybe some people will actually try to find jobs and stop sucking off the teet of taxpayers.
@Sheridan No one will be losing their jobs, they'll just be working less hours for a while till someone grows up and fixes the problem. A lot of hysteria over this minor cut. If allowed to continue it just means about a 20% cut in government expenses over the next 10 years. Thats certainly doable and good for the country.
@Blindman@Sheridan"No one will be losing their jobs, they'll just be working less hours for a while"
And for people who have been living on the razor's edge every month, that may be much worse than losing their job. Try cutting YOUR income by the same amount, and give it away - not put it in savings.
Curious, did #thestateofwa's smart #Dem #leadership fall into a sinkhole? In a time like this, hiding from The People is NOT an economic strategy. #Time to face the #music. Either #lead or #resign.
@Kenmar Vibar Bual It was the GOP House that left town a day before the cuts started.
"Government spending cuts may be here for good." Â
Hope so!
@CountryCharacter Me too!
Yahooooooo! It's a great day!!!
To ANYONE ... anyone... who does NOT understand baseline budgeting... I will gladly explain it to you.... in simple, easy to understand language.
For the low information person..... if you make 10.00 a week... but spend 15.00 a week, you are going in debt. If you only spend 12.00 one week, instead of 15.00... YOU JUST SAVED 3.00....This is math for obama and the democrats. They believe that more is less. That is why I cannot trust a liberal. Still going into debt, but you convinced yourself you spent less than your taking in.Taxing the rich, WILL NOT make up the difference in Washington D.C. anymore.... the time TO CUT IS NOW... Please do it for the children
@Awesomness incarnate"Please do it for the children"
You mean like the children who are going to go hungry because of this?
What of the children who won't have the medical care they need now, or public facilities and roads that will not be kept in repair, and may become dangerous in the future? Are you really willing to leave that to them?
Â
@OrcasThunder @Awesomness incarnate Maybe they could look at all these duplications in federal programs,  each no doubt management heavy, that could be combined for a saving in order to ensure children do not go hungrey or without medical care.
It all comes down to priorities.
%s
@Awesomness incarnate  EXCELLENT POST !!!!!!!!!!!!
If you believe that is the math of just democrats then I have a bridge to sell you.
Allow me another couple quotes:
"The money power preys upon the nation in times of peace & conspires against it in times of war. It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy. It denounces, as public enemies, all who even question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me & the financial institutions at the rear, the latter is my greatest foe. "
and
"The government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers. The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government's greatest creative opportunity. The financing of all public enterprise, and the conduct of the treasury will become matters of practical administration. Money will cease to be master and will then become servant of humanity." Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â - President Abraham Lincoln
@cheekygesturton And Abe would be in tears seeing the state of the party he founded...
@cheekygesturton Problem is; Money is NOW the master of most!
QUOTE FROM Pres.Woodrow Wilson 1919 _several years after signing Fed. Reserve Act_
âI am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit. We are no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.â
It happened sooner in the UK, with the so called 'Bank of England'. Â Now comes the ruin that Wilson spoke of. Â Tomorrow's talk will be "austerity measures"
@cheekygesturton To understand the future, one must study the past. I have no idea who said it but it works for me.
Where's an Andrew Jackson now, when we need him?
@cheekygesturton "You are a den of Vipers and theives" Andrew Jackson called the bankers as they were. Too bad nobody in Washington has the balls to call it like it is. Well, Ron Paul did. Watching him embarrass Bernanke time after time was enjoyable, but i wish something would have come of it.
@cheekygesturton He changed his name to Ron Paul. And now he's gone too. The Federal Reserve Act was one of the most perverse acts ever done to this country and yet its so simple to fix. We could save $3 trillion in interest debt by just ending the fed and handing those duties back over to the Dept. of Treasury where they belong.
I'm guessing it will make an impact. Enough to keep GDP stagnant and hiring low.
@Release The Cracken
hmmmmâ¦.. Pretty much what many reps and especially most t partiers are hoping for.
@wingerair @Release The Cracken anything to stall the economy
@TruthinAdverts Exactly.
Lets make the US tax code the size of a Readers Digest Magazine written in plane english without any special loopholes for the people that have been buying congress. If you make money you pay your fair share.Â
The wild spending would be controlled because congress would not have to do things for a few to get the voted dollars that they need to get elected. Term limits would help also. Congress should have the same benefits that everyone else have and no more.Â
@swan Nice - then I could read it on the toilet as well.
@swan Every one paying 20% works for me. No deductions,capital gains 20% . That is no deductions for anyone. Also no "Earned Income Credit". Where you get a "refund" without paying anything in to begin with.Â
@Maynard G Krebbs@swan"That is no deductions for anyone."
You mean like the home mortgage deduction?
You must be a renter.
Of course, the landlord would increase your rent to compensate for the loss of the deduction...