Budget cuts in full swing after sequester

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WASHINGTON—Big budget cuts are now a reality.

After signing the order, President Obama has been on the phone with lawmakers trying to reverse it.

Monday, there is no sign of compromise as we face week one of a much tighter federal budget.

As the reality of $85 billion cuts settles in, Washington’s still in a stalemate.

Sen. Mitch McConnell, Senate Minority Leader, said, “I haven’t heard a single Senate Republican say they would be willing to raise a dime in taxes.”

Rep. John Boehner, Speaker of the House, said, “He got his tax hikes. It’s time to cut spending and every American knows it.”

Publicly, the White House is banking on pressure from taxpayers feeling the pinch.

Gene Sperling, Director of the National Economic Council, said, “Our hope is that, as more Republicans start to see this pain in their own districts, that they will choose bipartisan compromise.”

Behind the scenes, President Obama is calling Republicans he thinks may be willing to raise taxes if he can get Democrats to cut Medicare and Social Security.

Sen. Kelly Ayotte, (R) New Hampshire, said, “If we’re going to increase revenue again, it’s got to go to the debt with real entitlement reform.”

Sen. Lindsey Graham, (R) South Carolina, said, “I’m not going to raise taxes to fix sequestration.”
It looks like Congress will agree to extend temporary funding through the end of the year.

That means no government shutdown.

However, there is no timetable on when Congress may be able to fix these cuts now already in place.