The Sequester

3:52pm

Wed December 5, 2012
It's All Politics

Looming Spending Cuts Would Hit Hard All Over

Originally published on Wed December 5, 2012 4:09 pm

Alan Krueger, chairman of the president's Council of Economic Advisers, warns that consumer spending will drop if Congress and the White House fail to reach a deal on spending cuts and tax increases.
Jewel Samad AFP/Getty Images

Tax increases are only a part of what lies ahead if Congress can't come to an agreement to avert the fiscal cliff by the new year. Massive spending cuts will also kick in — and those cuts will be felt throughout the economy.

The current stalemate got under way two years ago when Congress, locked in a bitter partisan battle over whether to extend the George W. Bush-era tax cuts, passed what was known as the Budget Control Act of 2011.

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3:25pm

Mon November 26, 2012
It's All Politics

GOP Pushback On No-Tax Norquist: Less Than Meets The Eye

Originally published on Tue November 27, 2012 8:00 am

Grover Norquist, head of Americans for Tax Reform, speaks on Nov. 5, 2011, in Washington, D.C.
Nicholas Kamm AFP/Getty Images

A handful of congressional Republicans after finishing their Thanksgiving dinners decided to give anti-tax crusader Grover Norquist the brushoff, saying they wouldn't abide by his "no new taxes" pledge as they work on a budget deal.

Breathless coverage ensued.

"Move over, Grover?" read one headline.

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1:23am

Thu November 22, 2012
It's All Politics

Before The Showdown: The Long Road To The Fiscal Cliff

Originally published on Thu November 22, 2012 2:45 am

Senate Minority Leader Mitch McConnell, R-Ky., prepares to announce a debt ceiling deal in July 2011. That deal laid the foundation for the across-the-board spending cuts set to take effect on New Year's Day, 2013.
Harry Hamburg AP

New Year's Day typically inspires hope and new beginnings. But this next one may be cause for trepidation. Tax cuts for all income levels expire on Jan. 1, 2013, and most federal programs will face a 10 percent haircut — because Congress failed to agree on a deficit-reduction plan.

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3:25am

Sat November 17, 2012
Planet Money

A Sequester Is A 'Jelly-Like Mass,' And Other Notes On Fiscal-Cliff Jargon

Originally published on Sat November 17, 2012 5:48 am

Charles Dharapak AP

1:31am

Tue November 13, 2012
It's All Politics

Fiscal Cliff Would Only Dent The Deficit

Originally published on Tue December 4, 2012 5:30 pm

House Speaker John Boehner, seen last week, discusses the looming fiscal cliff.
Brendan Hoffman Getty Images

Virtually everyone agrees that allowing the nation to fall off the fiscal cliff would be a bad thing.

Government programs would be cut, taxes would rise significantly on a majority of Americans, and according to the Congressional Budget Office, the economy would fall back into recession.

But get this: Even if all of those things happen, there would still be a budget deficit.

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