Obama Urged Congress To Delay State Budget Cuts

President of the United States (U.S.), Barack Obama urged Congress to delay state budget cuts are automatically scheduled on March 1, 2013. According to Obama, the delay should be taken to avoid a real and lasting impact for U.S. economic growth.

Beginning in March 2013 to mark the deadlines political compromise between the U.S. Government concerns associated with the Republican Party or the fiscal cliff cliff fiscal budget and the U.S. in January 2013. "These cuts are deep and indiscriminately to things such as education and training, energy, and national security would be burdensome and slow the U.S. recovery," Obama said.

According to Obama, lawmakers must act on a package of spending cuts in the short term and to change tax policy to increase state revenues. The increase in revenue is needed to patch part of the budget cuts of $ 1.2 trillion that will be made in early March.

Tax increase

As the drama that occurred in the face of the cliff of fiscal risks and the proposed increase in taxes on the rich at the beginning of last year, Obama's also had to deal with the Republicans had a majority in parliament (House of Representatives).

Republican leader, said they hoped automatic spending cuts of $ 1.2 trillion will be completely done in March 2013. Some lawmakers do not agree with the move to raise state revenue that was brought up Obama.

"We believe there are better ways to reduce the deficit, but the American people do not support the sacrifices and real spending cuts to tax increases greater," said John Boehner, Chairman of the House of Representatives who is leader of the Republican Party of Ohio.

Obama did not explain in detail the tax changes that will be made to raise state revenues. However, before Obama said he wants to cut taxes for the discounted upscale and changing tax policy for purchases and capital gains or capital gains.

Previous U.S. imposed a tax on capital gains is lower than the tax on wages. Obama has proposed a recount on capital income (earnings) and comparable to ordinary income taxes to increase revenue. The move is expected to raise tax revenues of approximately U.S. $ 16.8 billion.

Bloomberg analysts expect U.S. economic growth this year is in the range of 2%. In the third quarter of 2012, the U.S. economy grew 3.1% and 0.1% decline in numbers in the last quarter of 2012. Although there are signs of recovery in the housing and labor markets, some economists predict slower U.S. expansion because of tax increases, spending cuts, decline in exports and a weak global economy.