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
Feb 26, 2013 1:02AM
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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 9:34PM
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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 11:38PM
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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... 

Feb 26, 2013 8:40AM
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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 25, 2013 7:46PM
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Good, this president is a lying liberal idiot that should have been impeached over the fast and furores and bengazi turmoil. Richard Nixon was impeached for alot less.
Feb 26, 2013 8:51AM
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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 10:40AM
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who wants to bet they'll simply kick the can down the road again? 
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. 
Feb 25, 2013 8:33PM
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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..

Still do.

Feb 26, 2013 8:48AM
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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 9:01AM
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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.

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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.

 

 

Feb 26, 2013 10:38AM
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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 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 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 10:12AM
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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 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 10:56AM
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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 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 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.
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