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Tuesday, December 4, 2012

What Gets Cut In Sequestration

Negotiations to avoid the fiscal cliff don’t seem to be going very well.

The White House shot down House Speaker John Boehner’s latest proposal that would raise tax revenue by closing loopholes, instead of raising tax rates on the wealthiest Americans, as proposed by President Obama.

If no deal is reached by January 2, 2013, all Bush-era tax cuts would expire. That means taxes would go up for everyone. The so-called sequestration would also kick-in, which would mean $1.2 trillion in across the board spending cuts over 10 years.

Some programs, like Medicaid, food stamps, the Children’s Health Insurance Program (CHIP) and Social Security would be shielded. But most other programs would be slashed by 8.2 to 9.4 percent.

The White House Office of Management and Budget projected how those cuts would take effect.

4 Of The Biggest Cuts

  1. Department of Defense: $54.7 billion (Defense job cuts: 282,400 contractors and 48,100 civilian DOD jobs)
  2. Health & Human Services: $6.57 billion (Centers for Disease Control: $70 million; National Institutes of Health: $2.5 billion)
  3. Medicare: $5.6 billion, mainly in payments in to doctors and hospitals
  4. Educational achievement and special education programs: $2.3 billion

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