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Monday, February 25, 2013

‘Sequester’ Spending Cuts Expected To Kick In

Congress returns from recess this week and, though they will try, lawmakers are not expected to pass any measures that would stop the harsh across-the-board budget cuts known as “the sequester” from kicking in starting Friday.

Last night the White House put out ‘fact sheets’ that spelled out what cutting $85 billion dollars from government spending this year would mean when money starts to dry up, such as 70,000 fewer children in Head Start and 4,200 fewer children in Georgia receiving vaccinations.

But some of the President’s critics are saying the sequester is over-hyped, or isn’t large enough.

Washington Post congressional reporter Ed O’Keefe gets us up to speed.

Guest:


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  • http://twitter.com/JohnnyFroggg J Frog

    Me and everyone else is paying 2% more in payroll taxes in 2013.
    The rich are paying an additional 4.6% (top rate from 35% to 39.6% ).
    The rich are paying an additional 3.8% tax on their “net investment income, i.e., dividends, interest, royalties, rents, other passive income and certain gains” because of the new Health Care Law.

    Lots of new taxes, very little cutting spending.

    • http://pulse.yahoo.com/_DPKS3HUGQBPILPIU7IVZSHGXLI Robert_N

      I have no doubt there’s more room for spending efficiency, without slashing so much that it’s a shock to a sluggish economy that still relies pretty heavily on government commerce. But most of what you mention (with healthcare-related taxes affecting relatively few) were temporary breaks, no? So people will be paying something closer to what they have in the past.

      • http://twitter.com/JohnnyFroggg J Frog

        There never seems to be a good time to cut. When times are bad…we can’t cut.  When times are good…we don’t cut, we expand programs.  Time to cut.The sequester takes back to 2011 spending levels. If that is a shock to our sluggish economy then the tax increases must equally have been a shock.  I think we can handle it.

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