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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.