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
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!
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.
Amerika's number one selling car !
Notice these lefty Cretins NEVER debate when they know they just got smacked around ?
ohhh Re TODD -
Was Obuma FOR Sequestration BEFORE he was against it ?
Taxi Boy - I need the electricity cost of running the Volt AND the 16 MAJOR accomplishments by Obuma
Tick-- Tick-- Tick
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!
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)?
Who will he demonize then?
What imaginary foes will he invent ?
2.4% cuts and the world will end ?
Dear Leader Obuma you lie like a rug
a) Brother is a complete idiot !!-
$50,000 spent for a $20,000 car. Nice !
By the way, a small point - Did you happen to ask "brother" HOW MUCH DOES HE PAY FOR ELECTRIC ?
You know the other source of energy used by the car ?
Is that free ?
I hear all the lefty cretins (all 57 buyers) , crow about how little gas is used.
HELLO how much does electricity cost ? Do tell---
You do know , Dear Leader has a plan to increase electricity 5 times in the next few years ?
uh, umm, ahh, umm - Yeah that's what I thought
b) PLEASE enlighten us on these 16 major accomplishments of Obuma. I've got a list too.
GIL263: this isn`t 1980.Anybody who believes the media is liberal is so
stupid they`d get lost in a bathroom.
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.
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.
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.
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 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.
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.
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Try as the bears might, they couldn't break U.S. stocks. But investors still face frothy prices and considerable headwinds.
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.