This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/world-us-canada-21610813
The article has changed 19 times. There is an RSS feed of changes available.
| Version 16 | Version 17 |
|---|---|
| Sequester deadline looms as US faces $85bn cuts | Sequester deadline looms as US faces $85bn cuts |
| (about 11 hours later) | |
| US political leaders have met for last-ditch talks at the White House, amid the prospect of steep budget cuts. | US political leaders have met for last-ditch talks at the White House, amid the prospect of steep budget cuts. |
| Cuts worth $85bn (£56bn), originally passed in an effort to push Congress to strike a budget deal, are due to become law by the end of Friday. | Cuts worth $85bn (£56bn), originally passed in an effort to push Congress to strike a budget deal, are due to become law by the end of Friday. |
| President Barack Obama hosted Democratic and Republican leaders, as a blame game rages in Washington. Congress has adjourned for the weekend. | President Barack Obama hosted Democratic and Republican leaders, as a blame game rages in Washington. Congress has adjourned for the weekend. |
| The IMF has said the cuts could have an impact on global growth. | The IMF has said the cuts could have an impact on global growth. |
| Analysis in the US suggests the nation's GDP (economic output) could grow by just 1.4% in 2013 if the cuts are not delayed or replaced. US GDP grew by 2.2% in 2012. | Analysis in the US suggests the nation's GDP (economic output) could grow by just 1.4% in 2013 if the cuts are not delayed or replaced. US GDP grew by 2.2% in 2012. |
| It will be fascinating to see how Obama plays today. | It will be fascinating to see how Obama plays today. |
| He has until midnight to sign an order making the cuts actually happen. | He has until midnight to sign an order making the cuts actually happen. |
| So he has to, by law, do something he says will be disastrous. | So he has to, by law, do something he says will be disastrous. |
| Will he do in front of the cameras? I doubt it. Will he speak first? Hard to avoid. | Will he do in front of the cameras? I doubt it. Will he speak first? Hard to avoid. |
| This is all about political theatre and the blame game. | This is all about political theatre and the blame game. |
| So far, opinion polls suggest more Americans blame Congress and the Republicans than the president. | So far, opinion polls suggest more Americans blame Congress and the Republicans than the president. |
| Neither side looks pretty. Both look as though they care more about their own ideology than the damage that will be done to the economy. | Neither side looks pretty. Both look as though they care more about their own ideology than the damage that will be done to the economy. |
| It is also a long game - there will be another budget deadline and probably a new crisis by the end of the month. | It is also a long game - there will be another budget deadline and probably a new crisis by the end of the month. |
| Obama's whole strategy is to divide Republicans and paint them as intransigent wreckers. | Obama's whole strategy is to divide Republicans and paint them as intransigent wreckers. |
| I expected him to look for advantage, not agreement. | I expected him to look for advantage, not agreement. |
| The White House meeting came as prospects for a deal to avert the cuts, known as the sequester, appeared slim. | The White House meeting came as prospects for a deal to avert the cuts, known as the sequester, appeared slim. |
| "The American people know that Washington has a spending problem," Republican House Speaker John Boehner said as he left the meeting on Friday. | "The American people know that Washington has a spending problem," Republican House Speaker John Boehner said as he left the meeting on Friday. |
| "While there are smarter ways to cut spending than the process that we are about to engage in," he continued, the House would not act before the Senate passed a bill. | "While there are smarter ways to cut spending than the process that we are about to engage in," he continued, the House would not act before the Senate passed a bill. |
| He also said tax rises were not an option. | He also said tax rises were not an option. |
| "Let's make it clear that the president got his tax hikes on 1 January," he said. "The discussion about revenue, in my view, is over. It's about taking on the spending problem." | "Let's make it clear that the president got his tax hikes on 1 January," he said. "The discussion about revenue, in my view, is over. It's about taking on the spending problem." |
| Budget bills from both parties were defeated in the Senate on Thursday. | Budget bills from both parties were defeated in the Senate on Thursday. |
| Although Republicans and Democrats both say they want to reduce the budget deficit, estimated at $845bn this year, the president accused Senate Republicans of allowing the cuts to proceed. | Although Republicans and Democrats both say they want to reduce the budget deficit, estimated at $845bn this year, the president accused Senate Republicans of allowing the cuts to proceed. |
| Mr Obama favours what he calls a "balanced" approach to deficit reduction, mixing cuts with tax rises for some Americans. | Mr Obama favours what he calls a "balanced" approach to deficit reduction, mixing cuts with tax rises for some Americans. |
| "They voted to let the entire burden of deficit reduction fall squarely on the middle class," he said of his rivals, in a statement on Thursday. | "They voted to let the entire burden of deficit reduction fall squarely on the middle class," he said of his rivals, in a statement on Thursday. |
| He criticised Republicans for refusing to close "a single tax loophole that benefits the well-off and well-connected." | He criticised Republicans for refusing to close "a single tax loophole that benefits the well-off and well-connected." |
| The president said that by not doing a budget deal to avoid the cuts, Congress would impose a "self-inflicted wound" on America. | The president said that by not doing a budget deal to avoid the cuts, Congress would impose a "self-inflicted wound" on America. |
| But Republicans contend that the president and his advisers created and proposed the idea of the cuts during budget negotiations in 2011. | But Republicans contend that the president and his advisers created and proposed the idea of the cuts during budget negotiations in 2011. |
| 'Tumble downward' | 'Tumble downward' |
| Ahead of the Friday morning meeting, reports said Mr Obama was still hoping to push for a wider fiscal deal to reduce the deficit by $1.5tn (£1tn) over the next 10 years. | Ahead of the Friday morning meeting, reports said Mr Obama was still hoping to push for a wider fiscal deal to reduce the deficit by $1.5tn (£1tn) over the next 10 years. |
| But attention will also turn to the next congressional challenge - a possible shutdown of the US government if no funding bill is passed in the next month. | But attention will also turn to the next congressional challenge - a possible shutdown of the US government if no funding bill is passed in the next month. |
| The BBC's Mark Mardell in Washington says the cuts are meant to hurt - they were deliberately designed two years ago to be so brutally painful that politicians of left and right would be forced to agree on a better way of balancing the books. | The BBC's Mark Mardell in Washington says the cuts are meant to hurt - they were deliberately designed two years ago to be so brutally painful that politicians of left and right would be forced to agree on a better way of balancing the books. |
| The cuts are split roughly evenly between military and domestic programmes, but effects will be felt over time rather than immediately. | The cuts are split roughly evenly between military and domestic programmes, but effects will be felt over time rather than immediately. |
| While hundreds of thousands of jobs are expected to be lost, no US government programmes will be closed down entirely. Cuts to healthcare provision for the elderly will be limited. | While hundreds of thousands of jobs are expected to be lost, no US government programmes will be closed down entirely. Cuts to healthcare provision for the elderly will be limited. |
| The scale of cuts will increase gradually over 10 years, totalling $1.1tn by 2023, according to the non-partisan Congressional Budget Office. | The scale of cuts will increase gradually over 10 years, totalling $1.1tn by 2023, according to the non-partisan Congressional Budget Office. |
| If there is no agreement, they are scheduled to be signed into the federal budget by President Obama by 23:59 local time on Friday (04:59 GMT on Saturday). | If there is no agreement, they are scheduled to be signed into the federal budget by President Obama by 23:59 local time on Friday (04:59 GMT on Saturday). |
| When Mr Obama signs an order later on Friday, a process to cut the defence budget by 10% and other programmes by 8.5% will be set into motion. | When Mr Obama signs an order later on Friday, a process to cut the defence budget by 10% and other programmes by 8.5% will be set into motion. |
| Millions of federal workers could face up to 22 forced days off without pay this year. | Millions of federal workers could face up to 22 forced days off without pay this year. |
| Our correspondent says the cuts will not happen overnight - they will be spread over the next seven months and many think Congress will agree to a deal sooner rather than later. | Our correspondent says the cuts will not happen overnight - they will be spread over the next seven months and many think Congress will agree to a deal sooner rather than later. |
| In the Senate on Thursday, a Democratic plan blocked by Republicans proposed nearly $30bn in future cuts in defence spending and a minimum tax rate on incomes exceeding $1m. | In the Senate on Thursday, a Democratic plan blocked by Republicans proposed nearly $30bn in future cuts in defence spending and a minimum tax rate on incomes exceeding $1m. |
| Next budget battle | Next budget battle |
| White House spokesman Jay Carney said there were "no preconditions" on what could be discussed in Friday's meeting. | White House spokesman Jay Carney said there were "no preconditions" on what could be discussed in Friday's meeting. |
| With Republicans refusing to allow tax rises and Democrats vowing to protect cherished social programmes, Congress is just weeks away from its next budget battle. | With Republicans refusing to allow tax rises and Democrats vowing to protect cherished social programmes, Congress is just weeks away from its next budget battle. |
| On 27 March a temporary federal budget that has kept the federal government running since 2012 is due to expire. | On 27 March a temporary federal budget that has kept the federal government running since 2012 is due to expire. |
| Failure by Congress to enact a new stop-gap budget could see parts of the federal government shut down. | Failure by Congress to enact a new stop-gap budget could see parts of the federal government shut down. |
| House Republicans have said they will vote on a bill next week to fund the government through the end of the fiscal year, on 30 September, but keep in place some automatic cuts taking effect on Friday. | House Republicans have said they will vote on a bill next week to fund the government through the end of the fiscal year, on 30 September, but keep in place some automatic cuts taking effect on Friday. |
| Meanwhile the International Monetary Fund (IMF) said the global economic recovery could be harmed by the automatic spending cuts. | Meanwhile the International Monetary Fund (IMF) said the global economic recovery could be harmed by the automatic spending cuts. |