Obama and Congress to try reaching spending –cut deal

By: Teni Sow | Senior Editor at Tambapress.com and Regular Contributor to Presspresser.com

The president Obama and the leaders in congress will attempt to reach spending-cut deal that would prevent a dangerous shout at the end of the week.

Obama called on negotiators to work around the clock to remove the relatively narrow difference between the Republicans and Democrats over the level of federal spending between September 30 and August. The situation is tough because the temporary government funding will runs out soon. After a 90 minute meeting with congressional leaders Obama told that he will be very much confident that they will be serious about getting something done. He also said that they should be able to complete a deal and get it passed and prevent a shutdown.

John Boehner the speaker of House of Representatives, a Republican left the meeting and told that progress was made while no agreement was reached. Harry Reid the Senate Majority Leader, Democrats also attended the meeting and he said that he is confident that they can get this done. Democratic aide in Congress said that the negotiation of the spending cuts for this year in the deal would end up probably being closer to 33 billion dollar than the 40 billion dollars target of the Republicans.

A deal should be reached by the Obama and Congressional leader and it will clear the way for the Senate and House to vote on funding the federal government through September 30. It is also being expected that the deal will put an end to a fight for over spending for the financial year which is going on for months. Obama warned of economic harm if a budget stalemate caused the federal government to partially close for the first time in 15 years. The president told that a government shutdown would have ramifications all across this economy in the early stages of a recovery of the economy from the worst recession since the 1930s. The result creates impacts among the small business owners, applicant for home loans and workers who would be left without paychecks as the result of federal layoffs.

The Administration officials also warned that the processing of income tax refunds rights which is in the heart of the refund season can halt the government shutdown. The workers and their possibility of layoffs were notified by various government agencies at the time of failure of the negotiation. Tom Vilsack the Agriculture Secretary warned in a letter to U.S Department of Agriculture Employees about the shut down and the Congress ability to pass a funding bill.

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Category: Finance