Debt

White House To GOP: Only One Way Around Defense Cuts -- And You're Not Gonna Like It

Brian Beutler | February 6, 2012, 3:52PM

House Speaker John Boehner (R-OH), President Obama and Senate Majority Leader Harry Reid (D-NV).

In light of Congressional Republicans' abandonment of a key part of the debt limit agreement, two senior administration officials briefing reporters at the White House Monday said automatic, across the board cuts to defense programs will happen as scheduled unless Republicans relent on their refusal to raise revenues.

The officials conducted the briefing under the condition that they not be quoted directly, but their position was unambiguous -- the White House will not support any effort to swap out scheduled cuts to defense programs (and other automatic cuts) unless Congress passes a balanced package of deficit reducing legislation of equal or greater measure. That means new tax revenue from wealthy Americans and corporate interests, which Republicans have routinely refused to consider.

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Defense Spending

Bait And Switch: GOP Leaders Renege On Debt Limit Deal Defense Cuts

Brian Beutler | February 3, 2012, 5:57AM

House Speaker John Boehner with House Majority Leader Eric Cantor in the foreground.

Republican leaders in Congress have all but reneged on a key agreement they reached with the White House last summer rather than reconsider their unwavering stance against new tax revenue.

Relations between the Obama administration and the congressional GOP were already just about as bad as can be. But even so, this sets a precedent future Congresses and White Houses will remember when partisan mismatches force them to strike deals and govern.

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Defense Spending

The GOP's Plan To Avoid Defense Cuts Without Raising Taxes

Brian Beutler | February 2, 2012, 12:00PM

Senate Minority Whip Jon Kyl (R-AZ) walks from his office to a policy lunch with fellow GOP members on Capitol Hill in Washington, D.C. on September 7, 2011.

Senate Republicans unveiled a proposal Thursday to avoid or delay looming, automatic cuts to defense and security programs by reducing the federal work force by five percent and freezing federal pay for two and a half years.

In a bid to recruit Democratic support for their legislation, the authors of the plan say it saves enough money to forestall automatic cuts to domestic programs, also set to kick in on January 2013. But they continue to oppose using any new tax revenues to offset any of these costs -- and in so doing they exposed a contradiction at the heart of their fiscal policy. They oppose tax increases, they say, because of their impact on economic growth -- yet their plan to avoid tax increases involves deliberately shrinking demand for jobs.

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Defense Spending

Why Dems Think They Have A 'Sword Of Damocles' In Tax Fight

Sahil Kapur | February 2, 2012, 5:43AM

Democrats believe they finally have a cudgel strong enough to force Republicans to relent on their absolutist opposition to tax increases: the $500-$600 billion in across-the-board military spending cuts due to kick in next year as part of the self-inflicted "punishment" for Congress's inability to battle the debt with savings elsewhere. Republicans are eager to reverse course on that and shift the cuts to non-defense programs, but even top military Democrats say they won't let that happen -- unless the GOP budges on its identity-defining resistance to new taxes.

The defense cuts -- along with an additional $600 billion in reductions to domestic spending -- were part of the "sequestration" that was meant to encourage the Deficit Super Committee to strike a deal on cutting by at least $1.2 trillion over 10 years. It failed. And Republicans, after initially signing off on the cuts, now say they're unacceptable.

Not so fast, say Dems.

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