'Sequester' budget cuts creating false fears? - KYTX CBS 19 Tyler Longview News Weather Sports

'Sequester' budget cuts creating false fears?

Posted: Updated:
  • CBS19.tv Web ExclusivesMore>>

  • Web Exclusive: Ultra HD TVs

    Web Exclusive: Ultra HD TVs

    (CNN) -Some people just have to have the latest in television technology. The newest TVs on the market- ultra-high definition TVs- or UHD TVs. They have higher screen resolution than current high def screens, and are also known as "4-K" sets. "More >>
    (CNN) -Some people just have to have the latest in television technology. The newest TVs on the market- ultra-high definition TVs- or UHD TVs. They have higher screen resolution than current high def screens, and are also known as "4-K" sets. "More >>
  • Web Exclusive: A product to help keep sharks away on sale

    Web Exclusive: A product to help keep sharks away on sale

    Monday, July 28 2014 9:40 AM EDT2014-07-28 13:40:46 GMT
    If you're headed on a beach vacation, there's a product you may be interested in to help keep sharks away.  The device is called a Shark Shield.  It is now being sold in Florida.More >>
    If you're headed on a beach vacation, there's a product you may be interested in to help keep sharks away.  The device is called a Shark Shield.  It is now being sold in Florida.More >>
  • Web Exclusive: Back to School costs really add up

    Web Exclusive: Back to School costs really add up

    Friday, July 25 2014 9:14 AM EDT2014-07-25 13:14:59 GMT
    Before you know it, fall will be here and it will be time to go back to school.  For parents that means stocking up on notebooks, number two pencils, and back to school clothes, all of which usually take a big chunk out of a family's budget.  So, just how much do parents will pay to send their kids off to school this year?More >>
    Before you know it, fall will be here and it will be time to go back to school.  For parents that means stocking up on notebooks, number two pencils, and back to school clothes, all of which usually take a big chunk out of a family's budget.  So, just how much do parents will pay to send their kids off to school this year?More >>

TYLER (KYTX) - The deadline to stop massive automatic budget cuts is just a few days away. The president continues to send warnings about the consequences while republicans say he's making the cuts sound scarier than they are. A local expert says the cuts won't be that overwhelming.

This whole round of cutbacks is referred to as the "sequestration" - basically a big word for budget cut across the board. The dean of the Business School at UT Tyler says that's not the only thing Washington has made more complicated than necessary. He doesn't think these cuts are as threatening as politicians say.

To many, the threat of the March 1 budget cuts seems like the end of the world.

President Obama addressed governors about the cuts saying, "Companies are preparing layoff notices. Families are preparing to cut back on expenses, and the longer these cuts take place, the bigger the impact they'll become."

They're cuts across the board that would affect every state in different ways, but they can be stopped.

"These cuts do not have to happen," Obama said. "Congress can turn them off anytime with just a little bit of compromise."

Harold Doty, Dean of the UT Tyler Business School, says he doesn't see compromise on the horizon.

"I would argue that neither side is doing their job," Doty said. "This was put together because it was supposed to be so scary that the two sides together simply wouldn't let it happen. Apparently, people have decided they are willing to let it happen because my prediction is that we will have the sequestration cuts at least initially."

He says that may be because the so called "devastating and brutal" cuts may not be that scary after all.

"The predictions I'm seeing say kind of the worst case that this will cut about a half a percentage off of our Gross Domestic Product growth so it's going to slow things down a little bit," Doty said.

However, he says even that will take time.  

"In fact it's cuts over a year so there's still time to adjust it," he said.

He hopes if the cuts do take effect Friday, republicans and democrats can find a way to compromise and make change. He says if that happens soon enough, we may not see effects at all.

Republicans like Rep. John Boehner say tax increases are out of the question. However the president and his followers say tax increases on the wealthy along with budget cuts are necessary.

Experts who predict there will be a great impact by the cuts say you'll see changes like layoffs in the defense department. They also say there will be flight delays, reductions in funding of medical research and even huge cutbacks at federally funded schools.

 

Powered by WorldNow

CBS19, MYTX & KCEB
2211 ESE Loop 323
Tyler, TX 75701
Phone (903) 581-2211
Fax (903) 581-5769

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KYTX. All Rights Reserved. Users of this site agree to the Terms of Service, Privacy Notice/Your California Privacy Rights, and Ad Choices.