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.
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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...
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..
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.
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
WE WILL BECOME THE SOCIALIST STATE RUSSIA BECAME.
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.
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.
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Do it once a year. This allows the best-performing asset classes to take off and run.
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