WASHINGTON, D.C. (KYTX/CBS) - There are just two days until $85-billion dollars in across-the-board budget cuts kick in. Right now, there doesn't appear to be any effort in Washington to avoid them.
The White House is insisting that any new plan includes cutting tax loopholes to bring in more revenue. Republicans say they will not approve any more tax increases. Some Senate Republicans are considering a compromise which would keep the cuts in place, but would give the President flexibility to decide which programs and government functions to cut.
Meanwhile, Federal Reserve Chairman Ben Bernanke appeared before a Senate committee Tuesday and urged Congress to delay the budget cuts. He says the immediate cuts will hurt the economy and fail to deal with long term national debt.
Bernanke says cuts do need to happen, but in the next decade when the rising costs of healthcare will make debt payments a real burden. Bernanke will go back up to capitol hill today to testify about the issue before a house committee.