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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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  • BHA_in_Vermont

    You started this segment with a comparison of how the Democrats and Republicans would raise revenues. What you didn’t mention is the Obama’s “offer” raises revenue immediately starting with the 2012 tax year. Boehner’s “offer” raises no money at all this year. It kicks the can down the road again while they decide which loopholes and deductions to cut. And we ALL know that will be a multi-decade argument with no resolution. Too many special interests that need THEIR deduction/loophole. It is everyone else’s deduction/loophole that can be cut.

    They should have been figuring this out over the last year when they kicked the can into a Presidential election year. Instead they played politics for a year and hoped Romney would win. Thanks for nothing Boehner.  Yes, we blame YOU for this problem.

    • http://twitter.com/mckalarose mckalarose

      Boehner’s plan called for an immediate cap on deductions (around the 50k mark), that’s in no way “kicking the can down the road”. We would see revenue from that within months. As we’ve all heard by now, the revenue Obama’s plan raises will fund our mammoth government for about 8 days. I’m going to venture a wild guess and say you get your info from 24-hr news networks, you even (over)use their rhetoric. 

  • David in Oregon

    I don’t care how its done but cuts needed to be made.

    Idealistically, we all want all of the services.
    Realistically, those services have not been properly funded for decades.
    At some point in time, the next credit card company is going to say “No”
    you can’t have any more credit or another credit card.

    I HATE the Republican incessant focus and G** D*** deductions and tax credits.
    I HATE even more the Democrats ceaseless call for higher taxes and more spending.
    Government is here to give a country a “structure” an infrastructure as a means for the people to (life, liberty and the pursuit of happiness thing).

    So there is my bang on this whole thing.  And Republicans, before you go and say “YEAH, way to go” here are other suggestions:

    Stop the fricken behavior tax deductions and credits.
    I got kids – thats my business.  Don’t give me a stinking deduction AND credit.  Having kids was my choice.
    I got a house – Again,…. my business.
    How I finance that house – Again,… my business.  I don’t need, nor should I feel ENTITLED to a deduction for any interest I pay.  I mean seriously?  I can budget for my house payment and my bills.  I don’t need this.
    Charity – Ah, here’s a hot one.  See my comments on any of the above.  If I give I will do it because I want to.  That’s my business.  Don’t give me a deduction for that.
    My oldest is going to college. – Again, my stinking choice (and his).  Keep your credits and deductions in your (our) pocket. (and yes I’m part of the evil empire that is radical right wing conservative christian).  Even I am saying I shouldn’t get a tax deduction for giving to my church.  If anything is my business that alone should be.

    Its too damn complicated to be an average Joe and do your own taxes for crying out loud.
    Government needs to stop the focus on “redistributing” the wealth of people and taxing them (or giving them tax breaks) on their “behavior”.  Tax them fairly and EFFICIENTLY.  County wide sales or production tax.  Or flat income tax.  I’m even OK with a flat tax only after reaching a poverty level of income.  But then after that,… make a dollar and pay a dime(or whatever).  No deductions, no credits, just a remittance.  Stop the insanity.

    And Democrats, before you go “YEAH, way to go” I got one more opinion:

    Medical service is NOT a right.
    Never has been, and never should be.

    We need to stop subsidizing industries (Corn, for example).  You want to know why high fructose corn syrup is in just about everything you eat?  You paid for it!!!!!  You should know that.  Evidently that was something you all wanted,….. continued massive subsidy of the corn industry.  Heaven forbid if we don’t, a lot of farmers will go out of business.  Fine, let’em.  The market will even out to supply/demand eventually and no one will ever notice.  And yes, the price of corn and products with corn in it will increase.  But remember, nothing in the market acts in a vacuum.  Supply and demand drive everything,….. except when Governments get involved and wreak havoc on the marketplace unnecessarily.

Robin and Jeremy

Robin Young and Jeremy Hobson host Here & Now, a live two-hour production of NPR and WBUR Boston.

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