Hiển thị các bài đăng có nhãn spending. Hiển thị tất cả bài đăng
Hiển thị các bài đăng có nhãn spending. Hiển thị tất cả bài đăng

Thứ Năm, 21 tháng 3, 2013

Republicans may use debt limit to leverage spending cuts

By Rachelle Younglai

WASHINGTON (Reuters) - House Speaker John Boehner and his fellow Republicans say they are preparing to use the next debt limit deadline to fight for further spending cuts and major changes to federal healthcare and retirement programs.

Boehner's demand that any debt cap increase be matched with commensurate budget savings sets up Republicans for another fiscal battle with the Obama administration and a possible repeat of the 2011 debt limit brawl that cost the United States its top credit rating.

"Dollar for dollar is the plan," Boehner told reporters on Thursday after the House passed a budget for next year that would cut domestic programs drastically but is not going to be approved by the Democratic-controlled Senate.

The government is on track to hit the limit on how much it can borrow around May 19. The U.S. Treasury can use emergency maneuvers so the administration can continue to pay bills such as interest on its debt.

But those measures are expected to run their course in July or August and Congress will have to raise the ceiling again or risk a damaging debt default.

In Boehner's weekly press conference, the speaker added that while he will seek cuts, he was "not going to risk the full faith and credit of the federal government."

His office later said Boehner's goal was not to default but to extract spending cuts from the administration of President Barack Obama.

Whether he and other Republicans will make good on their threat is an open question. In January, after months of saying they would block an increase in the debt limit unless Obama offered significant cuts, Republicans switched gears and extended the borrowing authority through May.

"We need to make sure that we have ... some real entitlement reform or real cuts," Representative Raul Labrador told reporters at a meeting of conservative lawmakers this week.

Without meaningful deficit reduction, "I don't think anybody here (House Republicans) will support the raising of the debt ceiling," the Idaho Republican said.

Kansas Republican Representative Tim Huelskamp, who was also at the meeting, said the debt ceiling remained the best opportunity to do something about the country's debt burden.

"This is going to be where the rubber meets the road," he told reporters.

Republicans argue that even if they fail to raise the debt limit, Congress could avoid default by instructing the Treasury to prioritize its various payments, putting bondholders first.

"We're willing to lay that out in law, to try to maybe create a statute that maybe makes it explicit," Representative Steve Scalise, the head of the largest group of House conservatives, told Reuters.

(Editing by Fred Barbash and Todd Eastham)


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Chủ Nhật, 17 tháng 3, 2013

Britain to devolve public spending to boost growth

LONDON (Reuters) - A plan to devolve potentially billions of pounds of public spending to local authorities and businesses in Britain to boost a stagnant economy won a green light from the government on Monday.

The Treasury said the coalition government had approved almost all the recommendations in a blueprint drawn up by Michael Heseltine, a former Conservative deputy prime minister.

The scheme will see public money for projects such as housing and transport, now controlled by various government departments, pooled into a single pot from 2015.

Regional groupings of local authorities and businesses - known as local enterprise partnerships - will bid for the funds and, if successful, oversee how they are spent.

The amount of money to be allocated to the new "Single Local Growth Fund" will be decided in a spending review to be published in June.

Heseltine had said shifting public spending away from central government would make the country more competitive.

He said on Monday the government's decision to accept the majority of his recommendations was "the most strategic supply-side decisions" he could recall.

"In essence, it accepts that London and its functional bureaucracies should rely more on the incentivisation of England's provinces and less on central instruction," Heseltine added in a statement released by the Treasury.

One issue left for a later decision was how to devolve funding for training and apprenticeships to the local level.

Officials at the Department for Business Innovation and Skills (BIS), led by Liberal Democrat Vince Cable, have argued that fixing Britain's skills shortage required a national approach, people familiar with the negotiations said last week.

The government rejected a proposal to make greater use of its existing powers to investigate foreign takeover bids of British companies, arguing Britain was committed encouraging open markets and inward investment.

(Reporting by Tim Castle and William Schomberg; Editing by Stephen Powell)


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Thứ Hai, 4 tháng 3, 2013

Obama rejects plan for more say in spending cuts

WASHINGTON (AP) — President Barack Obama brushed off a Republican plan Tuesday to give him flexibility to allocate $85 billion in looming spending cuts, wanting no part of a deal that would force him to choose between the bad and the terrible.

Three days out and no closer to any agreement, both parties sought to saddle the other with the blame for the painful ramification of the across-the-board cuts set to kick in Friday. Obama accused Republicans of steadfastly refusing to compromise, while the top Senate Republican, Mitch McConnell, chided Obama's effort to "fan the flames of catastrophe."

McConnell and other top Republicans were lining up behind a plan that wouldn't replace the cuts but would give Obama's agency heads, such as incoming Defense Secretary Chuck Hagel, greater discretion in distributing the cuts. The idea is that money could be transferred from lower-priority accounts to others that fund air traffic control or meat inspection.

But Obama, appearing at a Virginia shipbuilding site that he said would sit idle should the cuts go through, rejected the idea, saying there's no smart way to cut such a large chunk from the budget over just seven months — the amount of time left in the fiscal year.

"You don't want to have to choose between, 'let's see, do I close funding for the disabled kid, or the poor kid? Do I close this Navy shipyard or some other one?'" Obama said. "You can't gloss over the pain and the impact it's going to have on the economy."

Giving the Obama administration more authority could take pressure off of Congress to address the sequester. But the White House is also keenly aware that it would give Republicans an opening to blame Obama, instead of themselves, for every unpopular cut he makes.

Not all Republicans were on board, either.

"We'll say, 'Mr. President, it is now up to you to find this $85 billion in savings,' and we'll say it's to make it easier for you, but every decision he'll make, we'll criticize," acknowledged Sen. Lindsey Graham of South Carolina in a CNN interview Monday.

The White House has warned the $85 billion in cuts could affect everything from commercial flights to classrooms to meat inspections. The cuts would slash domestic and defense spending, leading to forced unpaid days off for hundreds of thousands of workers.

The impact won't be immediate. Federal workers would be notified next week that they will have to take up to a day off every week without pay, but the furloughs won't start for a month due to notification requirements. That will give negotiators some breathing room to work on a deal.

Although Obama was to discuss the cuts among other topics Tuesday in a White House meeting with Graham and GOP Sen. John McCain, there were no indications that negotiations between Obama and congressional leaders were under way. Dampening hopes for a compromise was a key disagreement about whether new tax revenue, by way of closing loopholes and deductions, should be included in any deal, as Obama has insisted.

In the Republican-controlled House, Speaker John Boehner of Ohio said he'd already done his part, complaining that the House twice passed bills to replace the cuts with more targeted reductions.

"We should not have to move a third bill before the Senate gets off their ass and begins to do something," Boehner told reporters.

Senate Democrats have prepared a measure that would forestall the automatic cuts through the end of the year, replacing them with longer-term cuts to the Pentagon and cash payments to farmers, and by installing a minimum 30 percent tax rate on income exceeding $1 million. But that plan is virtually certain to be toppled by a GOP-led filibuster vote later this week.

Recharging his effort to lay out the stark consequences for letting the cuts take effect, Obama traveled Tuesday to eastern Virginia, where he warned that workers at the state's largest industrial employer, Newport News Shipbuilding, would sit idle. He stood in front of a massive submarine propeller, with workmen and the few female employees watching up from the cavernous assembly floor and said the cuts would mean construction and repair of Navy ships would be delayed or canceled altogether.

"These cuts are wrong. They're not smart, they're not fair. They're a self-inflicted wound that doesn't have to happen," Obama said.

The highly staged visit earned him a harsh rebuke from Republicans, including Boehner, who claimed Obama was using U.S. troops as props in his campaign to scare Americans into raising taxes.

But Obama, grasping eagerly for the chance to portray his positions as having broad appeal, singled out for praise the few Republicans who say they're open to new revenues as part of a deal. At the top of his list was Virginia Rep. Scott Rigell, who traveled with the president on Air Force One to call attention to the need to find a way out of the cuts.

"I boarded the plane knowing that some would potentially misinterpret this," said Rigell, who both criticized Obama for not putting forward a detailed plan and criticized Republicans who say there's no room to raise revenue or that the sequester should go into effect. "Even if you hold the view that defense spending should come down, this is not the right way to do it."

Also on Tuesday came word of the first tangible impact of the looming budget cuts on the nation's security at home. To save costs, the Department of Homeland Security has started releasing illegal immigrants being held in immigration jails across the country, Immigration and Customs Enforcement said.

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Associated Press writers Andrew Taylor in Washington and Nedra Pickler in Newport News, Va., contributed to this report.

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Reach Josh Lederman on Twitter at http://twitter.com/joshledermanAP


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