This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

House, Senate Actions Show Deep Divide In How To Deal With Federal Budget









House votes to freeze and potentially slash pay for federal employees, while three senators call for reductions in enormous taxpayer subsidies to wealthiest contractors

WASHINGTON, March 6, 2013 /PRNewswire-USNewswire/ -- Actions taken today by the House and Senate show that lawmakers are at odds in how best to resolve federal budget issues, and unfortunately federal employees are right in the crosshairs.

Earlier today, in passing an appropriations bill that covered just the Defense and Veterans Affairs departments, the House of Representatives voted to freeze the pay of the working- and middle-class Americans who make up the federal civil service for a third consecutive year.

In doing so, the House ratified sequestration, thus potentially slashing the income of hundreds of thousands of federal employees – from aircraft mechanics to Border Patrol agents – by as much as 20% if their agencies insist on 22 days of furloughs.

Later in the day, three senators – Barbara Boxer, Charles Grassley, and Joe Manchin – urged the Senate Appropriations Committee to use the fiscal 2013 funding measure to lower the obscenely high cap on taxpayer subsidies to compensation for contractors.

In a letter to Senate Appropriations Chairwoman Barbara Mikulski and Ranking Member Richard Shelby, the bipartisan trio wrote:

"Most Americans would be shocked to know that under current law, government contractor employees can charge taxpayers $763,029 per year for salary reimbursements. The current compensation limit has more than doubled since 2000 and has grown more than 55 percent faster than the rate of inflation.  The maximum amount of taxpayer dollars being paid to reimburse contractor employees for salaries not only increased more than $70,000 from the previous year's limit, it is now nearly double the salary earned by the President of the United States."

AFGE National President J. David Cox Sr. called attention to these disparate actions with the following statement:

"Both ends of the evolutionary scale were on display in the U.S. Congress today. In the GOP-dominated House of Representatives, knuckle-dragging lawmakers lashed out yet again at modestly paid civil servants and voted to enact during the rest of fiscal 2013 the sequestration cuts that will compromise important federal services. In the Senate, three lawmakers, attempting to appeal to the better angels of our nature, tried to convince their colleagues that the long-running, taxpayer-subsidized gravy train for the wealthiest contractors should be derailed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs