Posted:
May 21, 2012
House Votes to Increase Defense Spending, Forcing More Domestic Cuts
On May 18, the House passed a bill to increase defense spending by more than the amount requested for the Department of Defense and $8 billion more than the House agreed to last August as part of the deficit reduction agreement. According to the
Washington Post, “House Republicans argued that they had identified non-defense [domestic] spending to offset the increases.” A week earlier, the House passed the
Sequester Replacement Reconciliation Act, a bill declaring that previously agreed to automatic spending cuts to defense programs “shall have no force or effect,” thereby shifting cuts to domestic programs.
Reuters reports that the largest cuts will hit “food stamps, Medicaid healthcare for the poor, social services block grants that fund various programs including Meals on Wheels for the elderly.” Neither bill is expected to pass in the Senate.
Leaders Stake Positions on Debt Limit, Spending
House Speaker John Boehner (R-OH) recently reiterated the position that Republicans will not agree to increase federal borrowing authority, known as the “debt limit,” without spending cuts of a greater value. President Obama responded by calling on Congress to pass a “clean” debt-limit increase and asserting that no new deficit reduction agreement will be reached without higher taxes for upper-income taxpayers. Both
leaders spoke last week, presumably while looking ahead to the November elections and the post-election traffic jam of legislation. In addition to the debt limit, which will be reached in early 2013, Congress is facing the 2012 expiration of the Bush-era tax cuts, estate tax rates, the alternative minimum tax, many other tax provisions, and the automatic across-the-board spending cuts enacted as part of the Budget Control Act of 2011.
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