Sequester | Budget Cuts or Tax Increases | Barack Obama pushing the GOP

United States of America President Barack Obama plans to make another plea Tuesday for congressional US law makers to reach a deal to avoid a round of deep budget cuts.

The president will appear with a group of emergency responders, including firefighters and medics, who he says could lose their jobs if the budget cuts are allowed to take effect.

Obama will call on Republicans to accept a plan by Senate Democrats to raise more revenue by ending certain tax exemptions for wealthy individuals and corporations.

The Democratic plan would put off $85 billion in budget cuts which are due to take effect on March 1.

The budget cuts, known as the sequester, will be split evenly between domestic and military programs.

The White House says the sequester will harm the nation’s fragile economic recovery.

But Republicans are opposed to raising any more government revenue after reaching a deal with Democrats earlier this year to raise income-tax rates on wealthy Americans. That agreement postponed the original January 1 sequester deadline.

On February 9, 2013 the following was reported.

U.S. President Barack Obama says he wants Congress to avoid a series of what he called “harmful, automatic cuts” that would threaten thousands of Americans’ jobs – called a sequester – if the politicians do not make changes to the country’s budget by March 1.

Obama urged the lawmakers in his weekly address Saturday to make “sensible changes” to entitlement programs and the tax code to reach the $4 trillion deficit reduction needed to stabilize the country’s economy.

The president said Congress has already cut the deficit by more than half with balanced spending cuts and higher tax rates for the wealthiest Americans.  He encouraged the politicians to make similar cuts by the March deadline.

Watch President Obama’s weekly speech:

In the weekly Republican address, Senator Lisa Murkowski from the northern state of Alaska said  the U.S. is entering an era of energy abundance.  However, Murkowski said energy projects are too often held back “by burdensome regulations, delayed permits, and overzealous litigation.”

Watch weekly Republican address:

And on February 5 the White House released this.
U.S. President Barack Obama has urged Congress to delay automatic spending cuts set for March 1.

Speaking at the White House Tuesday, the president called on lawmakers to quickly pass a package of limited spending cuts and tax reforms until they can come up with a “smarter solution” to the nation’s debt problems.

Obama acknowledged that reaching agreement on a full budget may not happen before the March 1 deadline. But he cautioned against sweeping reductions.

“We can’t just cut our way to prosperity. Deep, indiscriminate cuts to things like education and training, energy and national security will cost us jobs and it will slow down our recovery. It’s not the right thing to do for the economy. It’s not the right thing for folks who are out there still looking for work. And the good news is this doesn’t have to happen,” he said.

The $1.2 trillion in cuts to domestic and defense programs are known as a “sequester.”

Republicans also are in favor of replacing the sequester, but say they disagree with Obama’s proposal for more tax increases. In a statement Tuesday, Senate Republican leader Mitch McConnell called on the president to lay out significant spending reforms now that Congress has acted on the tax issue. He warned that the “clock is ticking,” saying it is “time to get serious.”

Lawmakers established the automatic budget cuts in August 2011 as part of an agreement to raise the U.S. debt ceiling. The deal specified that the cuts would go into effect this past January if a special “supercommittee” failed to trim the deficit by an equal amount over a 10-year period.

The supercommittee failed, forcing Congress to act to delay the cuts, which coupled with automatic tax increases, were dubbed the “fiscal cliff.” But the lawmakers’ January 1 agreement, which raised tax rates on the wealthiest Americans, only postponed the cuts for two months.

Obama said there is no reason for thousands of jobs to be put in jeopardy just because lawmakers could not come together to eliminate tax loopholes or government programs that they agree need reform.

“Our economy right now is headed in the right direction, and it will stay that way as long as there aren’t any more self-inflicted wounds coming out of Washington,” said Obama.

A White House statement said “uncertainty around the sequester is already having a negative impact” on the nation’s economic growth.

Last week, the government reported the U.S. economy contracted unexpectedly in the final three months of last year, partly because of lower defense spending.


Comments are closed.