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IPFS News Link • Government Debt & Financing

A "Drastic" Budget Proposal

• Free Patriot Press
New York Daily News reports, “The Republican-controlled House of Representatives voted for massive spending cuts Saturday, slashing $60 billion from the budget and setting up a potential showdown with President Obama.” This Congress is under pressure to pass a budget before March 4 that will run until September 30. This is because the 111th Congress failed to pass a full budget, instead passing bills to extend 2010 spending levels until March 4, 2011. New York Daily News continues, “There is little time to work out a deal because Congress is in recess next week.” Adding, “If a new proposal is not in place by next month's deadline, the government will shut down for the first time since 1995.” I didn't realize that cutting 1.6% of a budget could be considered a “massive spending cut.” This minimal cut in spending has also been called “dramatic” (Washington Post) and “a meat-ax approach on top of a meat-ax approach” (Rep. Norm Dicks). Tom Knapp writes, “Not only is $61 billion not 'dra