Spending cuts deal: Barack Obama pushes short-term solution in US budget battles
"This doesn't have to happen,'' Obama said of the dramatic across-the-board cuts looming next month. He spoke in brief remarks at the White House, adding that there should be no reason for the "self-inflicted wounds,'' job losses and hits to already weak economic growth "just because folks in Washington'' couldn't come up with a plan to reform government spending and close loopholes in the federal income tax laws. He did not take questions.
He also emphasized the need for more revenues arguing: "We can't cut our way to prosperity.''
Boehner said in a statement that he opposed increased revenue, saying: "...Americans do not support sacrificing real spending cuts for more tax hikes.''
If the automatic cuts are allowed to kick in on March 1, they would reduce Pentagon spending by 7 percent and domestic programs by 5 percent. Food vouchers and Medicaid, which help provide food assistance and medical care for the poor, would be exempt. The Medicare health insurance program available to Americans at age 65 could see a 2 percent cut. While taking a huge bite out of the economy, the cuts would inevitably lead to job losses at a time when unemployment is still at 7.9 percent nearly 4 { years after the financial crisis that sent the United
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