Boxden hiphop sports wild'ish games movies news eyecandy tech gear rides
trending now most viewers #top20 top yesterday all sections videos pics tracks headlines

Feb 21 - Sequester 101: What happens if cuts kick in March

most watched this minute | see more
most viewed right now
178 viewing
Video inside Arch That Back Challenge (2015 Hoes Gotta Love Em)
225 comments
most viewed right now
89 viewing
 Image inside Chief Keef X Meek Mill **SHOTS FIRED**
79 comments

top in section
67 viewing
 Image inside 23 Difficulties Only Introverts Have T Deal With
top in wild'ish
top in section
24 viewing
 343 Turns off bullet magnetism in Halo patch. Makes gamers realize they arent ..
top in games

people viewing this topic:   (0 members and 1 guests)  
 
 

let em know » Share this on TwitterShare this on Facebook
 Feb 21 - Sequester 101: What happens if cuts kick in March
Unread 2 years agoclass of '05 - away - #1
909 pageviews
4 comments


bobbysteels18 550 heat pts550 space
avatar space
The World is your's
space
$6,364 | POWERFUL
Sequester 101: What happens if cuts kick in March


Come March 1, the government cuts that nobody in Washington thinks are sensible are set to take hold.
Welcome to the “sequester,” $85 billion in spending cuts poised to hit nearly every function of government and affect virtually all Americans.
The sequester is a complex concept with a tortuous history. Here are the basics on the automatic spending reductions set to come.
1. Where did the sequester come from?
This particular Washington doozy came out of another conflagration – the debt-ceiling f!ght of 2011. Republicans, fresh off their electoral landslide in the 2010 midterms, demanded $1 in spending reductions for every $1 increase in the federal debt ceiling.
The messy negotiations that ensued buried the stock market and undermined consumer confidence, but policymakers did, in the end, hatch a plan to raise the US borrowing limit.
More specifically, Congress and President Obama agreed to the Budget Control Act (BCA), which matched some $2.4 trillion in debt-ceiling hikes with a similar amount of deficit reduction over the next decade.
Of the total deficit reduction, $900 billion was to be achieved through spending caps affecting all government functions outside of entitlement programs. For the rest, Congress was to explicitly decide on how to make the reductions through a bipartisan commission of lawmakers known colloquially as the “supercommittee.” That group was supposed to cut $1.2 trillion but also had a goal of $1.5 trillion, with the possibility of going even higher.
Vested with immense power and special rules for moving its recommendations through Congress, the committee did what Congress does frequently of late: stalemated and failed.
That triggered the BCA’s backup plan: the sequester. This is $1.2 trillion in automatic, across-the-board reductions in nearly all government operations over the next decade.
These cuts were supposed to be so painful and so stupid that they would act as an incentive for the supercommittee to come to a deal. Apparently, lawmakers overestimated the painfulness of the reductions or underestimated their own fecklessness.
The sequester was set to go into place on Jan. 1 of this year, but lawmakers found some $24 billion in reductions (a 50-50 mix of specific cuts and new tax revenue) to delay it until March.
And thus, here we are.
2. What is the sequester set to actually do?
The sequester would spread out about $109 billion in cuts per year, every year, for 10 years.
As lawmakers already paid for $24 billion this year, the overall level for 2013 now stands at $85 billion. But there’s another twist: The $85 billion is really more like only $44 billion in actual cuts over the next six months of the fiscal year – because some of the cuts would apply to spending obligations that stretch out over multiple years.
A standard year of sequestration, with $109 billion in cuts, would see about half that total, some $55 billion, come from the Pentagon. This is the side of the equation meant to bring Republicans to the negotiating table.
The Democratic priorities under fire are $43 billion in cuts to all other aspects of government – from education to social services to NASA and the National Institutes of Health.
The final bit ($11 billion) is made up of something that’s annoying to both parties: a 2 percent reduction in payments to Medicare providers.
3. Who is to blame for the sequester?
Short answer: almost everybody.
The actual mechanics of the sequester – dangling a deficit-reduction goal in front of a team of lawmakers with a harsh consequence for failure – was dreamed up by the White House, notably by Treasury Secretary nominee Jacob Lew.
That’s the account given by veteran journalist Bob Woodward in his book, “The Price of Politics.”
Yet every member of the congressional GOP leadership who now criticize the cuts as the “president’s sequester” voted for the bill.
Another version of events, outlined by John Avlon of The Daily Beast, claims that the idea came from Speaker John Boehner’s office and the House Republican Policy Committee.
Whatever the case, the bill passed with 269 “yea” votes in the House – 174 Republicans (the vast majority of their conference) and almost 100 Democrats to boot.
On the Senate side, 28 Republicans joined nearly all Democrats to notch 74 "yea" votes.
4. What would the cuts do to the economy?
At $85 billion, the cuts amount to a sliver of the more than $3 trillion annual federal budget. They’re an even tinier speck of America’s $16 trillion economy.
Still, with impacts measured in billions of dollars, the sequester is not trivial. The cuts could cost 750,000 jobs in 2013 and reduce GDP by more than half a percentage point, according to the Congressional Budget Office. This estimate largely jibes with the prognostications of several private-sector forecasters.
5. Will everything happen on March 1?
The lights won’t go out on federal employees and economic output won’t stop on March 1, to be sure. But if Congress doesn’t act, some practical impacts will be felt soon thereafter – such as fewer air-traffic controllers and TSA agents at airports and fewer open hours at national parks.
Many of the cuts would take weeks to directly whack the economy. Millions of federal workers facing furlough, for example, wouldn’t stay home one day a week until April under most circumstances, because of labor laws.
Federal agencies have been planning for the sequester’s impact for at least the past several months, moreover, and could work to delay some of the hardship in hopes of a political settlement.
Some programs, including Social Security and Medicaid, are shielded from any hit, the Congressional Research Service writes. Also included, it says: “refundable tax credits to individuals; and low-income programs such as the Children’s Health Insurance Program, Supplemental Nutrition a.ssistance Program, Temporary a.ssistance for Needy Families, and Supplemental Security Income.”
The Congressional Research Service adds, “Some discretionary programs also are exempt, notably all programs administered by the Department of Veterans Affairs. Also, subject to notification of Congress by the President, military personnel accounts may either be exempt or reduced by a lower percentage.”
One possibility is that Congress could restore or reshape the reductions by the end of March, when funding authorization for the entire federal government expires and lawmakers could again go into a potentially bruising financial battle.
However, the prospect of the sequester has already had an economic impact. Defense contractors drastically cut back their spending during the fourth quarter of 2012 in anticipation of the sequester, for example – an indication that private-sector growth has already been hampered by expectations of the cuts.


Sequester 101: What happens if cuts kick in March 1 and four other questions - Yahoo! News
Reply With Quote
Props given to bobbysteels18 hot topic  (02-21-2013)

4 comments for "Feb 21 - Sequester 101: What happens if cuts kick in March"

- To post a comment, join the squad -


Unread 2 years agoclass of '09 - on now - #2
ImAMonster 315 heat pts315 space
avatar space
GEORGIA BORN & RAISED
space
$30,683 | POWERFUL
Great choice, America!!! Screwed ya once and you choose to get screwed even more. Awesomesauce.
Reply With Quote
Unread 2 years agoclass of '05 - away - #3
NNatic  space
avatar space
Senior Member
space
$616 | 1788296
Well this will get out of control political in the matter of not time.. and understandably so, but man we need to stop our financial bleeding. As a country we dont have a fu*king pot to p!ss in. We are broke as hell borrowing more than 40% of every single dollar we spend as country.

Like any one of our personal finances, we absolutely cannot continue doing this. Like a struggling business, we have to cut back. Yes I know.. our government is not a business... but we have a LOOOT of waste in our current setup.

It wont be easy and everyone will throw their arms up, blame the other side and rant and rave... fu*k politics man. It is just such bullsh*t. They sit here and re-write the damn issues to favor their side and brainwash their followers into hating the other side. Every single one does it. fu*k em!
Reply With Quote
Unread 2 years agoclass of '04 - away - #4
tdm2000 5 heat pts space
avatar space
ClearViewDesigners.com
space
$1,745 | 8681223
Maybe the Gov should hit up GM or Bank of America for a bailout.
Reply With Quote
Unread 2 years agoclass of '09 - away - #5
messy marv stan 2870 heat pts2870 space
avatar space
messy marv stan
space
$23,591 | POWERFUL
$85 billion is like 2% of what the goverment spends in a year
i say a tax refund of $800 or so should be issued for every american family
Reply With Quote
 

Home > all sections > BX Daily Bugle > The Bugle's page 2
  
    
          join bx


 




that hot ish yesterday


most viewed right now
33 viewing
Video inside What if yo girl did this?
179 comments
@wild'ish
most viewed right now
23 viewing
NBA When Ball is Life… but you TRASH.
47 comments
@sports
most viewed right now
21 viewing
Video inside Chic Raw (Philly rapper) - Back To Back Freestyle (Drake Diss, Addresse..
114 comments
@hiphop
most viewed right now
20 viewing
Video inside 3 PEAT x Drake
521 comments
@hiphop
most viewed right now
12 viewing
Image inside (rumor) Drake's final diss to be titled "Three Strikes"
87 comments
@hiphop
most viewed right now
9 viewing
Aug 3 - McDonalds suggests to employees to return gifts
75 comments
@news
most viewed right now
8 viewing
Video inside Drake runs Philly, just left yesterday says Ar Ab OBH crew
314 comments
@hiphop
most viewed right now
7 viewing
Image inside Sticky Fits - New product for baseball caps
109 comments
@gear
most viewed right now
5 viewing
Strip Club Brawl: Meek Mill smacks Floyd Mayweather in head with glass bottle ..
61 comments
@hiphop

^
contact us   |   bx@twitter   |   bx@facebook   |   privacy   |   search   |  © BX 1998-end of time