Sequester, Part II of Fiscal Cliff
By: Rebecca Jeffrey
Updated: February 7, 2013
Kicking the can down the road is finally catching up with the US.
"They said, we're going to put all the spending cuts off until march and we're going to have a small negotiated tax increase now. Well, now we're coming up to march, and that's what the Sequester is, it's the spending cuts," Brandon Simmons, CEO of Integrity Capital Wealth Management said.
President Obama passed the Sequester Bill into law during the 2011 debt ceiling debate.
"It was supposed to be such a punitive and unpleasant experience that surely the government would reach a compromise and not have to experience the sequester," Simmons said.
Come March 1st, nearly 100 billion dollars could be cut from federal spending, including a 7 percent cut from military spending alone.
"It could mean that government workers are furloughed or laid off, that's the government term that they use, it could mean that some government services are cut or limited," he said.
In Northwest Arkansas, 31,000 jobs are through the government.
"Everybody could experience some pain."
Fortunately, Simmons said another minimal compromise will likely be reached.
"I think that's our most likely scenario becaues that's what indeed happened with the fiscal cliff."
A temporary fix for a trillion dollar problem.
"They said, we're going to put all the spending cuts off until march and we're going to have a small negotiated tax increase now. Well, now we're coming up to march, and that's what the Sequester is, it's the spending cuts," Brandon Simmons, CEO of Integrity Capital Wealth Management said.
President Obama passed the Sequester Bill into law during the 2011 debt ceiling debate.
"It was supposed to be such a punitive and unpleasant experience that surely the government would reach a compromise and not have to experience the sequester," Simmons said.
Come March 1st, nearly 100 billion dollars could be cut from federal spending, including a 7 percent cut from military spending alone.
"It could mean that government workers are furloughed or laid off, that's the government term that they use, it could mean that some government services are cut or limited," he said.
In Northwest Arkansas, 31,000 jobs are through the government.
"Everybody could experience some pain."
Fortunately, Simmons said another minimal compromise will likely be reached.
"I think that's our most likely scenario becaues that's what indeed happened with the fiscal cliff."
A temporary fix for a trillion dollar problem.
