GOP anti tax focus reshapes budget battle in DC
Democratic leaders were caught off guard as Republicans refuse any income tax increases, pushing deficit reduction toward spending cuts. Obama and allies lost leverage on broader entitlement reform, while sequestration deepens discretionary cuts and underfunds education and infrastructure.
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Automatic budget cuts threaten vast federal furloughs and Medicare cuts
The coming automatic reductions may force more than half of the 2.1 million federal workers to take furloughs. At the Pentagon about 800,000 civilian staff could miss 22 days across five months, losing 20 percent of pay. Medicare reimbursements will drop 2 percent, or 98 cents on the dollar, with total Medicare spending cuts near 100 billion over ten years. The health law's tax credit subsidies are shielded from these automatic cuts.
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