Deficit reduction target reached, but no one's happy
NEWS ANALYSIS
As automated federal spending cuts take effect, projected red ink for the next decade has been reduced by about $4 trillion. But this wasn't how Democrats or Republicans wanted to do it.
By David Lauter, Washington Bureau, LA Times
3:00 AM PST, March 4, 2013
WASHINGTON — For the last two years, official Washington has pursued a clearly defined budget goal — reduce projected deficits for the next decade by $4 trillion.
Mission accomplished. Why so many long faces?
President Obama and congressional Republicans went through their first round of cutting in 2011, shaving about $1.5 trillion from federal spending. The "fiscal cliff" deal in January brought another $720 billion, mostly in higher taxes on the wealthy.
Now the automatic spending reduction package known as the sequester is projected to cut spending by about another $1 trillion over the decade, with some $85 billion coming this year. Those changes in spending and taxes will save the government an additional $700 billion in interest over the decade by reducing the need to borrow money, bringing the overall total to more than $3.9 trillion.
(More here.)
As automated federal spending cuts take effect, projected red ink for the next decade has been reduced by about $4 trillion. But this wasn't how Democrats or Republicans wanted to do it.
By David Lauter, Washington Bureau, LA Times
3:00 AM PST, March 4, 2013
WASHINGTON — For the last two years, official Washington has pursued a clearly defined budget goal — reduce projected deficits for the next decade by $4 trillion.
Mission accomplished. Why so many long faces?
President Obama and congressional Republicans went through their first round of cutting in 2011, shaving about $1.5 trillion from federal spending. The "fiscal cliff" deal in January brought another $720 billion, mostly in higher taxes on the wealthy.
Now the automatic spending reduction package known as the sequester is projected to cut spending by about another $1 trillion over the decade, with some $85 billion coming this year. Those changes in spending and taxes will save the government an additional $700 billion in interest over the decade by reducing the need to borrow money, bringing the overall total to more than $3.9 trillion.
(More here.)
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