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Obama Will Ask Congress for Budget Cuts to Head Off Automatic Reductions Obama Will Ask Congress for Budget Cuts to Head Off Automatic Reductions
(35 minutes later)
Developing news. Updates are coming on NYTimes.com and on The Times’s mobile apps. WASHINGTON President Obama on Tuesday will call on lawmakers to quickly pass a package of limited spending cuts and tax changes that can head off the automatic, across-the-board reductions that are set to take effect on March 1, an administration official said.
WASHINGTON — President Obama on Tuesday will call on lawmakers to quickly pass a package of limited spending cuts and tax changes that can head off the automatic, across-the-board reductions that are set to take effect on March 1, an administration official said.
The president will deliver the request in a statement on Tuesday afternoon at the White House. The official said Mr. Obama will acknowledge that a broader budget agreement is unlikely to be reached by next month’s deadline when the cuts to domestic and military programs will go into effect.The president will deliver the request in a statement on Tuesday afternoon at the White House. The official said Mr. Obama will acknowledge that a broader budget agreement is unlikely to be reached by next month’s deadline when the cuts to domestic and military programs will go into effect.
Asking for quick action to avoid the automatic cuts, often called the sequester, is a reflection of the impact that White House officials believe the cuts would have on the American economy and possibly around the world. Officials say the deep, indiscriminate cuts would cost hundreds of thousands of jobs as government agencies and contractors shrink spending and payrolls.Asking for quick action to avoid the automatic cuts, often called the sequester, is a reflection of the impact that White House officials believe the cuts would have on the American economy and possibly around the world. Officials say the deep, indiscriminate cuts would cost hundreds of thousands of jobs as government agencies and contractors shrink spending and payrolls.
“With our economy poised to continue to strengthen this year, the president will make clear that we can’t see another self-inflicted wound from Washington,” the White House official said. “The president will urge Congress to come together and act to ensure these devastating cuts to defense and job-creating programs don’t take effect.”“With our economy poised to continue to strengthen this year, the president will make clear that we can’t see another self-inflicted wound from Washington,” the White House official said. “The president will urge Congress to come together and act to ensure these devastating cuts to defense and job-creating programs don’t take effect.”
Officials did not say whether Mr. Obama will detail a specific package of cuts and tax adjustments. In the past, Mr. Obama has said cuts in spending must be balanced by effort to raise new tax revenue by closing loopholes on wealthy Americans and the oil and gas industries.Officials did not say whether Mr. Obama will detail a specific package of cuts and tax adjustments. In the past, Mr. Obama has said cuts in spending must be balanced by effort to raise new tax revenue by closing loopholes on wealthy Americans and the oil and gas industries.
Mr. Obama is set to deliver the remarks on Tuesday at afternoon, just before the Congressional Budget Office is scheduled to release its annual economic report and its latest projection on the country’s deficit. Mr. Obama is set to deliver the remarks on Tuesday afternoon, about the time the Congressional Budget Office is scheduled to release its annual economic report and its latest projection on the country’s deficit.
The report by the budget office will provide the first official update of the country’s deficit since the president and Congress agreed to spending cuts and tax increases to avoid the so-called fiscal cliff at the end of last year.The report by the budget office will provide the first official update of the country’s deficit since the president and Congress agreed to spending cuts and tax increases to avoid the so-called fiscal cliff at the end of last year.
New deficit projections will define the scope of the nation’s spending problem and will help to shape the contours of the fiscal fights between Mr. Obama and the Republicans in Congress in the coming years.New deficit projections will define the scope of the nation’s spending problem and will help to shape the contours of the fiscal fights between Mr. Obama and the Republicans in Congress in the coming years.
The push by the president to avoid the sequester is also an admission that efforts to reach a bigger deal with Republicans to cut spending and raise revenues is not likely to be reached in the coming months. House Republicans this week criticized Mr. Obama for failing to meet Monday’s deadline to submit a budget to Congress.The push by the president to avoid the sequester is also an admission that efforts to reach a bigger deal with Republicans to cut spending and raise revenues is not likely to be reached in the coming months. House Republicans this week criticized Mr. Obama for failing to meet Monday’s deadline to submit a budget to Congress.
“This was supposed to be the day that the president submitted his budget to the Congress, but it’s not coming. It’s gonna be late,” House Speaker John A. Boehner said in remarks from the House floor Monday. “That’s too bad. Our economy could use some presidential leadership right now.”“This was supposed to be the day that the president submitted his budget to the Congress, but it’s not coming. It’s gonna be late,” House Speaker John A. Boehner said in remarks from the House floor Monday. “That’s too bad. Our economy could use some presidential leadership right now.”
House Republicans blame Mr. Obama for first proposing the automatic cuts, though Congress passed them in the summer of 2011 as part of a deal to raise the nation’s debt ceiling. The cuts were slated to go into effect Jan. 1, but Congress delayed them during negotiations last December.House Republicans blame Mr. Obama for first proposing the automatic cuts, though Congress passed them in the summer of 2011 as part of a deal to raise the nation’s debt ceiling. The cuts were slated to go into effect Jan. 1, but Congress delayed them during negotiations last December.
Eager to avoid the cuts to military spending, House Republicans have already proposed different spending reductions that Mr. Obama and Democrats say would be harmful to important domestic programs.Eager to avoid the cuts to military spending, House Republicans have already proposed different spending reductions that Mr. Obama and Democrats say would be harmful to important domestic programs.
“Republicans have twice voted to replace these arbitrary cuts with common-sense cuts and reforms that protect our national defense,” Mr. Boehner said in a statement Tuesday. “The president’s sequester should be replaced with spending cuts and reforms that will start us on the path to balancing the budget in 10 years.”“Republicans have twice voted to replace these arbitrary cuts with common-sense cuts and reforms that protect our national defense,” Mr. Boehner said in a statement Tuesday. “The president’s sequester should be replaced with spending cuts and reforms that will start us on the path to balancing the budget in 10 years.”
Administration officials have been saying for weeks that the looming cuts have already had an impact on the nation’s economy. White House officials say the sequester was intended to force a more “balanced” set of deficit reduction measures.Administration officials have been saying for weeks that the looming cuts have already had an impact on the nation’s economy. White House officials say the sequester was intended to force a more “balanced” set of deficit reduction measures.
They say the cuts passed by the House do not meet that test. And they said the automatic cuts would have serious impacts on the services provided to some of the neediest citizens.They say the cuts passed by the House do not meet that test. And they said the automatic cuts would have serious impacts on the services provided to some of the neediest citizens.
“While we need to deal with our deficits over the long term, we shouldn’t have workers being laid off, kids kicked off Head Start, and food safety inspections cut while Congress completes the process,” the White House official said.“While we need to deal with our deficits over the long term, we shouldn’t have workers being laid off, kids kicked off Head Start, and food safety inspections cut while Congress completes the process,” the White House official said.
The White House has also been aggressively warning about the dangers of the automatic cuts to military readiness. Leon E. Panetta, the departing secretary of defense, said on Sunday’s talk shows that the country’s security would suffer if they went into effect.The White House has also been aggressively warning about the dangers of the automatic cuts to military readiness. Leon E. Panetta, the departing secretary of defense, said on Sunday’s talk shows that the country’s security would suffer if they went into effect.
“It is irresponsible for it to happen,” Mr. Panetta said on NBC’s “Meet the Press” program on Sunday. “I mean, why in God’s name would members of Congress elected by the American people take a step that would badly damage our national defense? But more importantly, undermine the support for our men and women in uniform. Why would you do that?”“It is irresponsible for it to happen,” Mr. Panetta said on NBC’s “Meet the Press” program on Sunday. “I mean, why in God’s name would members of Congress elected by the American people take a step that would badly damage our national defense? But more importantly, undermine the support for our men and women in uniform. Why would you do that?”