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Obama set to urge deficit deal to governors | Obama set to urge deficit deal to governors |
(35 minutes later) | |
President Barack Obama is set to address a gathering of US governors in an effort to ratchet up pressure on Congress to avert a potentially harmful series of across-the-board budget cuts. | President Barack Obama is set to address a gathering of US governors in an effort to ratchet up pressure on Congress to avert a potentially harmful series of across-the-board budget cuts. |
Mr Obama has urged Congress to pass revenue increases and narrow budget cuts to avoid $85bn (£56bn) in automatic reductions this year. | Mr Obama has urged Congress to pass revenue increases and narrow budget cuts to avoid $85bn (£56bn) in automatic reductions this year. |
Unless Congress acts, the automatic cuts are set to take affect on Friday. | Unless Congress acts, the automatic cuts are set to take affect on Friday. |
Republicans say they will not agree to a deal that includes a tax rise. | Republicans say they will not agree to a deal that includes a tax rise. |
The budget cuts, known in Washington DC as the sequester, were devised in 2011 as an intentionally painful cudgel to encourage Democrats and Republicans in Congress to strike a deal to reduce the US budget deficit. | The budget cuts, known in Washington DC as the sequester, were devised in 2011 as an intentionally painful cudgel to encourage Democrats and Republicans in Congress to strike a deal to reduce the US budget deficit. |
Now, House Republicans say reduced spending should be the focus of any deal, while Mr Obama and the Democrats want a package to include new tax revenue by closing tax loopholes for wealthy Americans. | Now, House Republicans say reduced spending should be the focus of any deal, while Mr Obama and the Democrats want a package to include new tax revenue by closing tax loopholes for wealthy Americans. |
With no deal in sight, on Sunday the Obama administration released fact sheets highlighting the threatened economic impact of the automatic cuts on a state-by-state basis. | With no deal in sight, on Sunday the Obama administration released fact sheets highlighting the threatened economic impact of the automatic cuts on a state-by-state basis. |
The White House has warned of job losses for teachers, more expensive meat prices as inspectors are furloughed, air travel delays, and complications in distributing vaccines for children. | The White House has warned of job losses for teachers, more expensive meat prices as inspectors are furloughed, air travel delays, and complications in distributing vaccines for children. |
The defence department has said it will make redundant up to 46,000 temporary workers and cause employees to lose one day of work per week without pay from April, saving $5bn. | The defence department has said it will make redundant up to 46,000 temporary workers and cause employees to lose one day of work per week without pay from April, saving $5bn. |
Meanwhile, Republicans and Democrats are each trying to make sure the public blames the other side, should the automatic cuts take effect. | |
The governors are in Washington DC for a meeting of the National Governors Association. | The governors are in Washington DC for a meeting of the National Governors Association. |