Sequestration was never intended to
be good fiscal policy. It was never intended to be policy, period. When
Congress passed the Budget Control Act in 2011, they formed the Joint Select
Committee on Deficit Reduction, more commonly known as the Super Committee, to
cut nearly a trillion dollars from the federal budget. Sequestration – a fancy
word for painful cuts to every area of the 2013 budget – was a failsafe in case
Super Committee negotiations broke down.
The plan was simple: By passing
sequestration into law, Congress was creating a deterrent against its own
gridlock. The law was so unpalatable to both sides – Democrats wanting to avoid
cuts to social programs, and Republicans wanting to safeguard defense spending –
that theoretically, everyone would negotiate in good faith to avoid it. [1]
The Super
Committee was a super failure, as probably was the intention. They could barely agree on where people would
sit at the table.
Under sequestration, an amount of
money equal to the difference between the cap set in the Budget Resolution and
the amount actually appropriated is "sequestered" by the Treasury and
not handed over to the agencies to which it was originally appropriated by
Congress. In theory, every agency has the same percentage of its appropriation
withheld in order to take back the excessive spending on an "across the
board" basis. However, Congress has chosen to exempt certain very large
programs from the sequestration process (for example, Social Security and
certain parts of the Defense budget), and the number of exempted programs has
tended to increase over time -- which means that sequestration would have to
take back gigantic shares of the budgets of the remaining programs in order to
achieve the total cutbacks required, virtually crippling the activities of the
unexempted programs. [2]
Congress, by
setting up the Super Committee, absolved themselves, except for these 12, of
having to make tough decisions on spending cuts with a huge election less than
a year away. I hate the expression ‘kick
the can down the road’ but that is exactly what this committee did. Now it’s time to pay the piper. As things stand today, if Congress does
nothing with less than 35 days until the end of the year, $1.2 TRILLION dollars
will be cut automatically from the federal budget. That’s about a 10% cut across the board. All programs except Social Security and a few
things on the Dept of Defense list will feel the cuts. Now this SOUNDS like a lot, but….. we have
until 2021 to realize this ‘cut’.
The entire
REPUBLICAN PARTY campaigned on CUTTING SPENDING. Well duh -
what is the flipping problem?
The Bush era
tax cuts will go. And the FICA payroll
tax will again be withheld from everyone’s salary. Well, dudes and dudettes, guess what. FICA is the ONLY funding source for Social
Security and Medicare. Zip, zero, nada
has gone in to THAT for the last two years – and both Medicare and SSI have
been on a slippery slope for a couple of decades. These tax INCREASES can be fiddled with by
Congress if they so desire, but Mr. Owebama has said he would veto anything
that didn’t include raising taxes on the top 2% of wage earners, so we are
probably at a Mexican standoff on that.
As an aside, those 2% of the vile, selfish ‘rich’ employ 40+% of the
WORKING public. When they have to pay
more in tax on their earnings, in addition to meeting the requirements of
Obamacare…. Well – please raise your hand if you think they will be hiring. ....waiting...... waiting....... OK - Those with your hands in the air are either stupid or ignorant. (There IS a difference).
I WELCOME
SEQUESTRATION! Bring it! It will do what our Congress is unable,
incapable, and unwilling to do – and that is CUT FEDERAL SPENDING!
Elections
have consequences. OWEbama won. It's HIS move - we do NOT have to start
giving away the family silver because of it.
We ran on cutting spending. If we
sit real still and wait.... the spending cuts will be automatic.
WHO IS GONNA
BLINK FIRST.
I agree, Mimi..... let people SEE what this government is costing them. Congress can always get off the pot any time after 1/1/13 and change anything in this sequestration package. I do NOT want my side to cave on tax cuts - PERIOD! I've written as much to my Congressman, for all that it will matter....
ReplyDelete...never a good option to procrastinate - friggin' politicians!
ReplyDelete