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.
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.
More on Top Stocks
President Obama is not proposing a tax hike. What he's proposing is getting rid of the (tax loopholes/breaks) on private jets, yachts and capital gains.....(something the average Joe/Jane doesn't get to take advantage of) so why should the "ultra rich"? With the revenue, President Obama can pay off Bush's War debt. If not the middle class will continue to pay. SIMPLE AS THAT...
"Facebook" a multi-million dollar company had "no" federal income tax liability and got millions of dollars in a refund...
Funny, Richard Nixon was one of my favorite Presidents..
But then the damn fool lied and lied about something stupid.
That all Parties had been doing for years..
GIL...You are REACHING, and running a SMOKE and SMEARS Campaign, just like the Majority of Conservative Republicans....Don't hurt the Wealthy, don't hurt the Defense Machine..
And for God's sake don't hurt, any of those "CUSHY" Government Jobs
After the rest of America, the Poor and Middle Classes, have taken it where the sun doesn't shine.
It's time to "Pay the Piper."
If you are a Moderate, with Fiscal Sanity; Maybe even a Conservative with that attitude, I could probably accept it ?....But, that's not what you sound like...The "free rides are over."
When you only blame the President, and make childish, mockery statements; It really doesn't hold water with me...
After the fiscal cliff, Boehner said "I got 98% of what I wanted".I guess that was a tax
increase.I`m going to start calling Boehner "the undertaker".He always looks like he`s at
a funeral.If he had his way we would be at a funeral.Except for the top 1%."the
undetaker" can`t hold the TEA party from taking over his party.
Copyright © 2014 Microsoft. All rights reserved.
'We're not exactly in a uniformly strong market,' says the notably pessimistic newsletter publisher.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.