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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112Comments
Mar 21, 2013 12:45AM
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I heard a rumor tonight on PBS  that some dildo in Washington wants Bernanke fired!  IF this were to happen, I am going  to do something I have never done, but should have.  IF this should happen, I will run my mouth from coast to coast  and Canada to Mexico!  OBUMMER needs to be impeached and removed much more than Bernanke needs to be fired.  That  running dumba-- should have never been put in the position he is in, and definitely not the second time!  And Boehner needs to hit the streets shortly thereafter!  This government is one big flubup and has been for many years. It started long before  Bush, Bush, Clinton, Reagan, and whoever else was running this railroad.  Obummer is flying by the seat of his pants on a daily basis. He does not have enough foresight to plan  and prevent until it gets dumped in his lap.

Greenspan was good; Bernanke is close.

Get rid of  dems. and reps. and this country will be a lot better off!

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If you let the people that run the organizations that are affected will be able to cut the fat without all the hullabaloo that is going on.  We citizens have cut back numerous times, I think these agencies can do the same.  Won't hurt them unless they are political and follow what the Administration tells them to do,  i.e. hurt the Republicans anyway they can.
Feb 26, 2013 4:38PM
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With the extra you pay for the volt,you could buy enough gas for the first 60,000 miles on a gasser with the same equipment.

Feb 26, 2013 4:01PM
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The whole thing is a joke. The measly amount being cut is the equivalent of not buying a tv guide during your weekly grocery store trip!!
Feb 26, 2013 3:57PM
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As that old saying goes, "LET THE CHIPS FALL WHERE THEY MAY"! We have to start somewhere & sometime to get control of our government, so now is the place & time in USA's history to get err done!

 

Feb 26, 2013 3:54PM
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The Congressional Budget Office has estimate the 85 billion in cuts in 2013 will cause the loss of 750,000 jobs directly and indirectly this year and will reduce the already painfully slow economic recovery in GDP by 25%. The cuts will push a genuine full recovery even further into the future, possibly years beyond the now projected full recovery year of 2017.
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The trade deficit with China last year was $315.1 billion last year, the largest on record with any country.    You can get 3.7 sequesters out of that.   Why don't we have a balanced trade with all our other trading partners instead of being so one sided against us (USA)?

Feb 26, 2013 2:50PM
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Anyone who uses this sequestration as an excuse to spread panic and fear doesn't deserve to hold public office.
Feb 26, 2013 2:28PM
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GIL263: this isn`t 1980.Anybody who believes the media is liberal is so

stupid they`d get lost in a bathroom.

Feb 26, 2013 2:17PM
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ALIAS BARRY SOETORO:Well. your statements are are lies, you can`t spell Obama

and you resort to name calling with no solutions of your own.You`re the typical

Republican.Actually, you`re a LOG CABIN REPUBLICAN.I`m sure as most lazy

Republicans you`re too lazy to look that up.

Feb 26, 2013 2:02PM
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Democrats, republicans, whatever?  They are all living outside of reality.  

"We the people of the United States of America in order to form a perfect union, Establish justice, 
Insure domestic tranquility, 
Provide for the common defense, 
Promote the general welfare 
and secure the blessing s of liberty to ourselves and our prosperity."

Does anyone know where this comes from?  
Feb 26, 2013 1:52PM
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Remember when the media was saying people were talking about suicide because of the "end of the mayan calendar". How the media tried to settle everyone down. I wonder how Obama is going to feel if someone does something like that because of his unnecessary "high drama" on the sequester.
Feb 26, 2013 1:45PM
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Maybe the answer is for the government to become more efficient.  Maybe there is to much redundancy and we are paying far too much for things.  What if for example, nursing homes could actually provide a day of care for a few hundred dollars, perhaps even down to $25.00 for some people who were not as needy.  So much of what we need is not rocket science, yer we have a bunch of highly paid rocket scientists providing should I say, menial services.  Let's take TSA's at the airport.  How much do they make?  No offense to anyone, but I just bet we waste 50% of the budget every day.  What if we didn't do that?  
Feb 26, 2013 1:27PM
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The sequester is a cut in spending,all the other cuts they claim to have made were only cuts to the increase in spending.
Feb 26, 2013 1:11PM
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Lets see....... Chase to lay off 4,000. The goal is to reduce expense by 1 billon. So assuming that the personnel represent 30% of the savings that's around $300,000,000.

 

$300,000,000 / 4,000 = $75,000 avg salary of laid off worker - Lots of taxable income there.

 

$300,000,000 / $17,000 (mediocre jobs) = 17,648 jobs needed - Little to No tax income for the Fed

 

The Federal government continues to erode the tax base and you don't think they are going to take more from you?? They don't even discuss fair trade sanctions or tariffs. Obama does not even meet with his own jobs council.

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It's not so much the $174,000 salary the Senators and House guys  pull down but the $2 trillion dollars of contracts that have 50 percent profit in them that they give to their buddies who in turn kick them back $60 billion in campain funds.

 

Hmmm let's see $1 trillion dollars of pure profit for only $60 billion dollars.

 

each year --

 

very very nice profit almost a 20 times return on investment per year. Sweet.

 

Hey if my senator is listening give me a $100 billion dollar contract and I will put say $10 billion to your campain fund ... Not that the money is coming from the profit on the contract.

 

Just what was that contract again. Oh yeah a survey of women if they wear make-up or not.

 

On second thought perhaps $100 billion is not enough let's bump the number up to $200 billion after all Bernanke can print that in seconds.

 

 

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Pretty much the US economy is doomed. Bernanke is trying to hold up asset prices for the super rich while half of America makes 1/4 of what the 1 percenters make and have an average wage of only $16,000 a year.

 

Avreage Housing prices are going up only because the number of $500,000 plus houses doubled.

 

Bernanke said

QUOTE

Bernanke said Fed policymakers are cognizant of potential risks from their extraordinary support for the economy, including the possibility the public loses confidence in the central bank's ability to unwind its stimulus smoothly or the potentially destabilizing effect of low rates on key markets.

But he added these did not seem material at the moment, adding the central bank has all the tools it needs to retreat from its monetary support in a timely fashion.

END QUOTE

 

but basically everyone knows he is printing money to buy US T-bills no one else is buying and defaulted mortgages from the banks to help them out.

 

The FEDERAL RESERVE has only one exit stratagy and that is to collapse the US economy and make the US dollar worthless.

 

The Chinese have put the nail in the US economy coffin. Yesterday they started selling Renminbi contracts in Hong Kong and Sinapore and Great Britain.

 

There is not going to be anybody trading in dollars soon as Beranake's policy of printing monies to infinity and beyond will result in a race for the bottom of the US dollar and nobody will want any of that action.

 

So the Chinese have dealt a death blow to the US economy and have not even fired a shoot.

Feb 26, 2013 12:22PM
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We should start a betting pool on how far down the road they'll kick the can.  Some kind of action will be taken somewhere, and for the umpteenth time, we'll get some kind of "extension", "bridge", "stop-gap", etc.. that will carry us for another few months without having to actually do anything.  My guess is, they milk it until Friday, come up with a deal that kicks the can down the road until the end of May, that way they can gear up for one last big fight before they all take the summer off.
Feb 26, 2013 12:17PM
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You know what's interesting? There are a whole lot of extra thumb pumpers on here today. There is no doubt that the sequester hits in 2 days. Name a state most HATE that gets kicked in the nuts with it? Texas. You're getting messed with and all we see is pee on your shorts.
Feb 26, 2013 11:44AM
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One thing is for sure, the sequestration will NOT affect congressional salaries, bonuses, pensions, insurance, vacations, recesses, travel, automatic pay raises, etc.  How many taxpaying citizens does it take to pay for just ONE congressman's salary of $174,000?  Your inept, taxpayer subsidized, worthless Government bureaucrats are the real 1% ers, and they're sucking the country dry. 
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