Boehner to Obama: 'You've got your tax increase'

Republicans and Democrats dig in yet one more time in a budget fight. The big question is how much the battles will hurt the economy.

By Charley Blaine Feb 25, 2013 7:26PM
Dollar bills floating over U.S. Capitol © CorbisNobody wants it, but sequestration -- the imposition of sharp and blunt federal spending cuts -- is coming on Friday. Nobody wants it, but nobody wants to negotiate a resolution to it.

President Obama wants some tax increases to offset some inevitable spending cuts. The Republicans won't discuss it.

The President on Monday urged the nation's governors to press Washington lawmakers into action to avert the looming sequester. "All of us are concerned about our politics, both in our own party's as well as the other party's. But at some point we've got to do some governing,"  he said.

But House Speaker John Boehner scoffed Monday at the tax idea. "The president says we have to have another tax increase to avoid the sequester," Boehner said. "Well, Mr. President, you got your tax increase. It's time to cut spending."

Boehner and others accused Obama of running a political campaign and trying to scare Americans rather than doing any serious talking about sequestration.
It's not clear how soon the cuts will be apparent after Friday when sequestration is supposed to kick in. Investors, however, didn't much like the uncertainty. The Dow Jones industrials ($INDU) fell 216 points to 13,784, the worst loss for the blue-chip index since November.

The sell-off was exacerbated by worries that Italy was heading to political deadlock and could disrupt markets in Europe.

The sequester involves about $85 billion in cuts, roughly split between military and nonmilitary domestic programs. It was imposed in the 2011 deal that ended the debt-ceiling crisis. The cuts were meant as a scare tactic, not as a real-world policy, the Washington Post noted on Monday.  The cuts conceptually were so deep and so painful, it was believed, that the two parties would be forced to replace them with something else.

But the Tea Party wing of the Republican Party is the controlling element, and they want spending cuts more than they care about anything else.

But after Boehner reportedly said over the weekend that the president had "b---s made out of marshmallows," the White House might not be too excited to negotiate with him.

The real bite will come on or about March 27 when Congress is supposed to pass a continuing resolution to keep the government running.

There are clear indications of who would be affected: Everyone. Federal employees face furloughs and salary cuts. Federal hiring has been frozen. The Transportation Department is warning that flights could be delayed or cancelled as air controllers are furloughed.

Airport security lines will be longer, Homeland Security Secret Janet Napolitano said Monday.

Most affected all will states and communities with big defense presences, including Texas, California, Florida, Virginia, Washington State and Hawaii.

In addition, medical research would be disrupted as would Medicare and other popular programs.

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Feb 26, 2013 11:19AM

MIRAGE GUY: Don`t act like you`re objective.We all know like most Republicans, you

are too lazy and stupid to have any solutions.You`re just a hatefull LOG CABIN

REPUBLICAN.I bet you`re too lazy to look up LOG CABIN REPUBLICAN.

Feb 26, 2013 11:12AM
So everyone wants to cut spending on everything everybody else is getting for nothing? Whoever came up with the sequestration idea was a really smart person.
Feb 26, 2013 10:56AM

No surprise here........... That is why the republicans tried to hold the ground on the first tax increase because they knew it would just open the flood gate for more tax increases. First the democrats will try to tax the rich to death and then they will start on the upper middle class then the middle class then the lower middle class........ All you people that supported the beginning of this raise tax cycle will soon be hip deep in it unless the republicans hold their ground and spending cuts that make sense are inacted.

Feb 26, 2013 10:43AM

I'm guessing by the sheer number of Kool Aid posters that these blogs actually matter and you are buying into the-- losing your shorts AND shirts scenario now.

Got to love you, Max... GAG Move... Guns Ammo and Gold. Three black holes most Republican and Tea Party zombies bought into. The first two get hyper-taxed, the last was a scam. You are about to lose your green eggs and ham!!!

Feb 26, 2013 10:40AM
who wants to bet they'll simply kick the can down the road again? 
Feb 26, 2013 10:38AM
Obama just loves to use scare tactics to get his way. I am not sure that will work this time. Most people are ignoring him because Washington fighting has become white noise. It seems we have folks in Washington who forgot about the rest of us out here trying to live and work while they go on playing games that effect every American. We need a whole lot more than $85B in cuts but if Obama has his way he will stop the cuts and spend even more. This country will be bankrupt if he is allowed his way another 4 years and we will all be poor.
Feb 26, 2013 10:35AM
Isn't the sequester a spending cut? When do the Republicans get it?
Feb 26, 2013 10:12AM
How long can Americans be so blatantly lied to?  I am tired of the tragedy play being put on by the President and his cabinet.  Once the sequester starts taking real affect and we all see that it is not catastrophic, it will be time to begin the rattling of the impeachment sabre on this socialist administration !    They have really mucked up this country!
Feb 26, 2013 9:01AM

The problem with GIVE & TAKE and the government is:

They GIVE us things that make us more dependent on them (BEHOLDING).

While they TAKE move of our money and freedoms.

Allowed to go on over time with them pushing it


Feb 26, 2013 8:51AM
Cut all aid to other countries. Cut payment to the UN. Cut all services to illegals. Why do we never hear these ideas from anyone in government.
Feb 26, 2013 8:48AM
So tell me why traveling by air will be disrupted when we pay a surcharge on every ticket sold, and the airlines pay taxes on every gallon of fuel. If these taxes are not high enough to pay the costs then raise them. These costs should not be coming out of the general budget.
And if you actually believe they are spending more more for air travel then they are taking in, I have a swamp in Florida to sell you. The government lies and it's all just a game to them.
Feb 26, 2013 8:40AM
Let the cuts come ! Cut the Military the most ! End the unpaid for wars ! Cut all loopholes to the rich ! The so called job creators has yet to produce anything with over 10 yrs of tax cuts to the rich ! Cut out the FEDs QE1,2,3  program ! FIRE BEN !!! If America cannot handle a 2.3% cut ? How in the heck can anything else be cut! What a bunch of fools in Congress . We need to FIRE them ! Its time to send all incumbents in Congress home for good ! Democrats and Republicans all need to go .. Anyone in Congress who has been there for over two terms needs to be fired.. Only in the land of the stupid can this go on...
Feb 26, 2013 8:29AM

"We need 10 times the spending cuts just to get back to where W left us..."


Huh? George W. Bush was the most profligate President in our history. He spend more, raised the debt ceiling more, lied more and drank more Kool Aid than all the Presidents before him. He also didn't pay his bills, which is what Obama has been doing. Obama has cut more overhead and reduced expenses to literal government poverty. What he hasn't done because of the Party of NO is to raise taxes on the rich and stop Wall Street and the Federal Reserve from driving us further into the ditch. The sequester will trip-up government contractors- ALL hired by Dubya without competitive bidding. It will force our bloated profligate military to go on a diet. It will force the GOP to ACT, which should be exciting to see since acting-up is all we've seen so far. It will illuminate anarchist groups when the GOP is forced into unintended consequences of their own making. Pretty clever if you ask me. Worst place to be in these coming months? The South. Never quick to begin with. Artificially positioned for duration survival by Dubya. Unlikely to shift well now and shift will happen because Bernanke will be ending Operation Twist when the Senate Financial Committee orders him to. Banks can't service the slop they booked. Ending banks looping their addictions will bring about a new economy. Pretty much--- to be GOP will help you find your knees. You'll be on them soon enough and often. BTW... the GAG Move will be common. GAG: Guns Ammo & Gold (stole that one from Max-- thanks!). Two out of three of those get taxed, the third is fixed, you will lose because bigger crooks control pricing. 

Feb 26, 2013 7:34AM

My life is perfect and great!


If any of yours isn't, go start a Revolution. I couldn't care less!


God bless America!

Feb 26, 2013 1:02AM
start with these cuts.   We're not even going to notice it.

Then put a plan in place to cut 2% annually off the bureaucracies until we are balanced

Then refocus on a jobs economy -- 
- not govt selected jobs..
- cut corp rate to globally competitive rate; <25% (yes, whack many of the tax goodies).  this will provide incentive for "repatriation" by american corps of offshore money and jobs.
- and stop printing money, so a buck of profit remains a buck

If the economy takes off, then the annual trimming will abate.  Though we might find we can do without quite so much govt.
Feb 25, 2013 11:38PM

We need 10 times the spending cuts just to get back to where W left us...  Obama is a Lazy, Arrogant, Corrupt Imbecile.  


850 Billion in spending cuts would still leave us a 400 billion dollar deficit.  85 Billion in spending cuts is what the imbecile Obama (and Bernache) are printing every month.


We need way more spending cuts.  Obama got his HUGE tax increase on the RICH!   I guess by rich, he means anyone with a job...  No it is time for Obama to live up to his Sequester Plan.   It was HIS idea and now he is against Balanced approach... 

Feb 25, 2013 11:10PM

CRAZY8`s:You must be smoking something good.The TEA party is a bunch of racist

Nazis that are being taken as fools by the Koch brothers.Who are convicted felons.

Feb 25, 2013 9:34PM
What i have noticed is that the liberal mind is only wired one way, how much i can get from someone richer without working for it, where the conservative mind works hard to create something to better society.
Feb 25, 2013 9:01PM
Obama to Bone Head: "You're going to get your spending cuts".
Feb 25, 2013 8:58PM

Question to republicans: 

   Was your tax refund bigger then the refund Facebook received?

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