President Obama to Propose Short Term Package to Put Off Spending Cuts
The White House released the following statement on Tuesday, announcing the president's plan to deliver remarks at 1:15p ET in which he'll emphasize the need for and propose a short term package that will assist in putting off spending cuts.
On Tuesday, President Obama will deliver a statement at the White House at 1:15 pm on the need for Congress to act to reduce the deficit in a balanced way and avoid the deep, indiscriminate cuts to domestic and defense programs slated to take effect in just over three weeks. Uncertainty around the sequester is already having a negative impact on our economic growth, and if it was to take effect it would cost hundreds of thousands of American jobs and have devastating impacts on our economy.
The sequester was never intended
to be policy, but was meant to force Congress to act to further reduce the deficit in a balanced way. The President has laid out a specific approach to reducing the deficit through a balance of spending cuts and a process for tax reform, based off his last offer to Speaker Boehner from December. The President is pleased that the House and Senate will move forward with their own budget process to reach a solution to our deficit challenges, and urges them to pursue a balanced approach.
But given that the budget process in Congress won't likely be completed by March 1st, the President on Tuesday will call on Congress to pass a smaller package of spending cuts and tax reforms to avoid the economically harmful consequences of the sequester for a few months, which will allow Congress more time to reach a solution that permanently avoids the sequester and significantly reduces the deficit in a balanced way. While we need to deal with our deficits over the long term, we shouldn't have workers being laid off, kids kicked off Head Start, and food safety inspections cut while Congress completes the process.
With our economy poised to continue to strengthen this year, the President will make clear that we can't see another self-inflicted wound from Washington. The President will urge Congress to come together and act to ensure these devastating cuts to defense and job-creating programs don't take effect.