Sequestration Nation: What March 1 Really Means for the Economy – DailyFinance

Sequestration Nation: What March 1 Really Means for the Economy – DailyFinance.

With many of the world’s nations falling into economic disrepair and fighting to stay afloat, the United States may come to the same fate come March 1. President Obama and congressional Republicans have no progress to head off the $85 billion in automatic budget cuts that go into effect on Mar 1. Lacking a bipartisan deal to avoid catastrophe and hoping to put pressure on the GOP lawmakers, the administration revealed details about the cuts’ consequences including less secure U.S. embassies, trimmed defense contracts, and furloughed air traffic controllers. When a budget fight between President Clinton and congressional Republicans led to two government shutdowns in 1995 and 1996, some threats came true and others did not only because private groups stepping in and contractors working for IOUs. The budget impasse eventually ended before serious damage happened.

This time no government shutdown will occur but automatic cuts between March 1 and September 30 will occur which means a reduction of 13 percent for defense and 9 percent for other programs according to the budget office. These cut and $1 trillion over the next decade were put into place two years ago when the administration and Congressional bargainers made them so harsh that everyone would be forced to compromise. This has not happened. According to the administration letters and testimony to Congress social security, Medicaid, Medicare, and veterans’ benefits are exempted. The cuts will be made over a seven month period and do not all take effect March 1. If a deal is reached anytime during this period the money could be restore either some or all. However left in effect the impact is not clear yet for each program. The law limits administration’s flexibility to protect initiatives, but the White House told agencies to avoid cutting those that present risk to life, safety or health and minimize harm to crucial services. Every agency will experience some effects from these budget cuts if they go into effect.

According to AOL Daily Finance these are the tentative cuts according to the administration letters and testimony to Congress:

-Defense: Troops at war would be protected, but there’d be fewer Air Force flying hours, less training for some Army units and cuts in naval forces. A $3 billion cut in the military’s Tricare health care system could diminish elective care for military families and retirees. And, in a warning to the private defense industry, the Pentagon said it would be “restructuring contracts to reduce their scope and cost.”

-Health: The National Institutes of Health would lose $1.6 billion, trimming cancer research and drying up funds for hundreds of other research projects. Health departments would give 424,000 fewer tests for the AIDS virus. More than 373,000 people may not receive mental health services.

-Food and agriculture: About 600,000 low-income pregnant women and new mothers would lose food aid and nutrition education. Meat inspectors could be furloughed up to 15 days, shutting meatpacking plants intermittently and costing up to $10 billion in production losses.

-Homeland Security: Fewer border agents and facilities for detained illegal immigrants. Reduced Coast Guard air and sea operations, furloughed Secret Service agents and weakened efforts against cyberthreats to computer networks. The Federal Emergency Management Agency’s disaster relief fund would lose more than $1 billion.

-Education: Seventy thousand Head Start pupils would be removed from the prekindergarten program. Layoffs of 10,000 teachers and thousands of other staffers because of cuts in federal dollars that state and local governments use for schools. Cuts for programs for disabled and other special-needs students.

-Transportation: Most of the Federal Aviation Administration’s 47,000 employees would face furloughs, including air traffic controllers, for an average of 11 days.

-Environment: Diminished Environmental Protection Agency monitoring of oil spills, air pollution and hazardous waste. The color-coded air quality forecasting system that keeps schoolchildren and others inside on bad-air days would be curtailed or eliminated. New models of cars and trucks could take longer to reach consumers because the EPA couldn’t quickly validate that they meet emissions standards.

-State Department: Slow security improvements at overseas facilities, cuts in economic aid in Afghanistan and malaria control in Africa.

-Internal Revenue Service: Furloughed workers would reduce the IRS’ ability to review returns, detect fraud and answer taxpayers’ questions. It offered no specifics.

-FBI: Furloughs and a hiring freeze would have the equivalent impact of cutting 2,285 employees, including 775 agents. Every FBI employee would be furloughed 14 workdays.

-Interior Department: Hours and service would be trimmed at all 398 national parks, and up to 128 wildlife refuges could be shuttered. Oil, gas and coal development on public lands and offshore waters would be diminished because the agency would be less able to issue permits, conduct environmental reviews and inspect facilities.

-Labor: More than 3.8 million people jobless for six months or longer could see their unemployment benefits reduced by as much as 9.4 percent. Thousands of veterans would lose job counseling. Fewer Occupational Safety and Health Administration inspectors could mean 1,200 fewer visits to work sites. One million fewer people would get help finding or preparing for new jobs.

-NASA: Nearly $900 million in cuts, including funds to help private companies build capsules to send astronauts to the International Space Station.

-Housing: The Department of Housing and Urban Development said about 125,000 poor households could lose benefits from the agency’s Housing Choice Voucher program and risk becoming homeless.

Chris Christie On Sandy Aid: House Republicans Were ‘Disappointing And Disgusting To Watch’ (VIDEO)

Chris Christie On Sandy Aid: House Republicans Were ‘Disappointing And Disgusting To Watch’ (VIDEO)

I am glad someone is finally talking about this because it can only be avoided for so long and two months is too long. New Jersey Gov. Chris Christie (R) had a few choice words for House Speaker John Boehner (R-Ohio) and House Republicans Wednesday for not holding a vote on a Hurricane Sandy relief bill:

“There is only one group to blame for the continued suffering of these innocent victims: the House majority and their speaker, John Boehner. This is not a Republican or Democratic issue. Natural disasters happen in red states and blue states and states with Democratic governors and Republican governors. We respond to innocent victims of natural disasters, not as Republicans or Democrats, but as Americans. Or at least we did until last night. Last night, politics was placed before oaths to serve our citizens. For me, it was disappointing and disgusting to watch.”

The Senate has approved a $60.4 billion aid package to help New York and New Jersey recover from the storm, while the House Appropriations Committee has approved a $27 billion measure. Christie said at the conference that he would not accept the smaller package. A vote will be held Wednesday on two different measure involving the package now split into two. Many republicans were outrage over the house speaker not voting on this sooner and moving it to the back burner. If it is not voted on soon, then they would have to start all over.

Good for Christie and I do agree for once with this governor. Again our government not just Obama can’t seem to think of others before themselves. Anyone remember Katrina same thing there too. For being such an advanced civilization, we are really in the stone age. This should be the easiest decision we make as a country but our leaders can’t seem to get anything done.

Ari Fleischer Says He’ll Give Less To Charity Because Of New Limits On Tax Breaks

Ari Fleischer Charity Tax Break

And we thought we avoided the fiscal cliff. Well we avoided the major cliff but now we have some mini cliffs to deal with one to address is charitable donations. Legislation passed by the Senate late Tuesday night will limit the amount wealthy people can claim for charitable deductions on their taxes. While some say donors shouldn’t be motivated by the amount of money they can write off, others –- including some nervous nonprofits –- argue that tax breaks for charitable giving should have been left untouched in the deal.

This is ridiculous since if you want to help help without exceptions like a higher tax write off. Is this guy going to feel the crunch if he can’t deduct as much? It appears not just our government is selfish but other special interest like non-profits and the wealthy are trying to get in on the act. These people again need to realize that the people who are going to get hurt in this scenario are those people who need the help and let’s be frank the people these kind of people make money off of everyday.

Health Care Industry Anxiously Awaiting Fiscal Cliff Outcome With Medicare, Medicaid Cuts On The Line

Health Care Industry Anxiously Awaiting Fiscal Cliff Outcome With Medicare, Medicaid Cuts On The Line.

It is about time they get nervous but in the end they might take a hit and find more ways to nickel and dime you for their services. The American people especially the older variety should be extremely worried about what happens when they can no longer afford the much needed healthcare. It is time we reform the whole system instead of bits and pieces. Universal healthcare anyone?

Harry Reid: John Boehner ‘Dictatorship’ Is Letting Time Run Out To Avert ‘Fiscal Cliff’

Harry Reid: John Boehner ‘Dictatorship’ Is Letting Time Run Out To Avert ‘Fiscal Cliff’.

My new favorite guy in this debate. I agree with this guy because the fiscal cliff affects 98% of the population of the US. The tax hikes will effect us all if they do not agree to keep the Bush tax cuts for incomes under $250,000. The saddest part because a few selfish people mainly Boehner the house speaker who refuses to work with the senate. This is why it is important America to be informed because we vote these people into office. The selfishness needs to end because their bloody feuds are now affecting all of us.