Correction: Budget Battle story
The cuts would be replaced with savings generated from dozens of sources. Among them are higher airline security fees, curbs on the pension benefits of new federal workers and additional costs for corporations whose pensions are guaranteed by the federal government. The measure also would slow the annual cost-of-living increase in benefits for military retirees under the age of 62.
The bill includes a 90-day provision that postpones a 20 percent cut in reimbursements for doctors who treat Medicare patients and replaces it with an increase of one-half of one percent
The combination of short-term spending increases and long-term savings would send deficits higher for the current budget year and each of the next two, a dramatic departure from the conservative orthodoxy that Republicans have enforced since taking control of the House three years ago.
That was a step too far for many Republicans, including some seeking election to the Senate next year.Rep. Jack Kingston of Georgia, one of several Senate hopefuls from his state, said he would vote against the legislation. He said the existing across-the-board cuts "have a tendency to cut out muscle with fat, but it's still the only tool in town for cutting spending." Rep. Tom Cotton, who is challenging Democratic Sen. Mark Pryor of Arkansas, announced his opposition, too, and said the legislation "busts the spending caps that took effect just months ago by spending billions now in exchange for supposed long-term spending cuts." Other Republicans said despite shortcomings, the bill was the best the party could get in divided government. "We have Republican and Democratic-controlled houses and as a result no one solution is possible," said Rep. Darrell Issa of California. Echoing Boehner's sentiments, he said of the outside groups, "What do they want, another government shutdown? If so, they ought to run for Congress."
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts