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Citigroup Inc. Message Board

  • kevinmik kevinmik Nov 21, 2011 8:24 AM Flag

    Pre-Conditioned $1.2 Trillon Spending Cut

    It seems to me the automatic $1.2 Trillion spending cut that will now be in play due to the super committee failure to come to an agreement is probably a better outcome, compared to what this stupid committee may have ever agreed upon. The fact is the budget is going to be cut by $1.2 Trillion and tax increases will just have to wait until 2013, when the Bush tax cut expires. I fully expect that after the next election Obama will be voted in for a 2nd term and the Democrates will once again control both the House and Senate and this time around the Bush tax cuts will not be extended, but will be adjusted. I happen to believe the Republicans have been playing with fire with their no compromise approach and will pay dearly for it in November 2012.

    JMO

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    • "failure to come to an agreement" ....is that code for "we can't do the job we asked for and are being paid to do"?

      • 1 Reply to okayrice1
      • With the congressional supercommittee debt-reduction talks on the brink of failure, Sen. Rand Paul said Sunday the “automatic cuts” scheduled to kick in aren’t nearly as Draconian as some have suggested.

        “I think we need to be honest about it,” the Kentucky Republican said on CNN’s “State of the Union.”

        “The interesting thing is there will be no cuts in military spending. This may surprise some people, but there will be no cuts in military spending because we’re only cutting proposed increases. If we do nothing, military spending goes up 23 percent over 10 years,” he told host Candy Crowley. “If we sequester the money, it will still go up 16 percent. So spending is still rising under any of these plans. In fact, if you look at both alternatives, spending is still going up. We’re only cutting proposed increases in spending.”

        If the debt-reduction panel fails to reach a deal by Wednesday, automatic across-the-board spending reductions would be triggered in January 2013 in domestic programs and in the defense budget.

        Defense Secretary Leon E. Panetta sent a letter last week to Congress describing the potential cuts as “devastating,” warning the cuts would undermine national security.

        Mr. Paul was skeptical: “That’s an interpretation. Defense spending will go up $100 billion over 10 years even if we sequester $600 billion, because the curve of spending in our country is going up at about 7.5 percent a year. All spending goes up.”

    • This is a charade. Whatever they decide doesn't get implemented until 2013, after the election, which means it can all be changed. This is smoke and mirrors by a cynical congress.

    • The so-called "automatic" budge cuts--called "sequestration"-- are not going to happen. Well, all of the social service cuts will, but the republicans will vote to take back the "automatic" cut to the military when they take power in 2013. Basically the fool democrats got snookered once again. I am voting republican if for no other reason than democrats are fools.

      • 3 Replies to fuxdoosh
      • You may be right. The democrats may have lost this one. I can't see those defense cuts happening. Somehow the republicans, or should I say money, always seems to win.

      • You are partially correct. The poster who stated, "The fact is the budget is going to be cut by $1.2 Trillion" is incorrect. The reality is that this does not take place immediately. After the November election and before everything kicks in in January, the lame duck House and Senate are apt to undue much of it. Meanwhile, the unsustainable debt continues to grow along with entitlement programs and government employment, neither of which can or should be sustained with tax increases. Many of these members of the House and Senate are ultimately interchangeable whether R or D after their names.

      • Execs making millions while the economy burns...drag your feet and talk all day.. Dont be produxtive

    • I think and believe the opposite. Democrats are at fault.

 
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