Sunday, March 3, 2013

FOXNews.com: WHITE HOUSE DIGS IN:Economic Adviser Points Finger at GOP for Cuts

FOXNews.com
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WHITE HOUSE DIGS IN:Economic Adviser Points Finger at GOP for Cuts
Mar 3rd 2013, 16:52

The White House dug in Sunday on President Obama's position on the $85 billion in spending cuts that kicked in this weekend, blaming Republicans and waving off criticism about presenting a doomsday scenario.

White House economic adviser Gene Sperling told ABC's "This Week" that Republicans are to blame because they would not agree to close loopholes to increase taxes. And their strategy is flawed, he said, because the cuts will take resources from several of the party's most valued positions – including national defense and border security.

"This is not a win for Republicans," Sperling said. "This cuts into military preparedness."

He also said he thinks his "Republican colleagues" will choose a bipartisan compromise that includes tax reform.

Sen. Kelly Ayotte, R-N.H., responded by saying Congress agreed to tax increases in January "at the president's request" and questioned why Obama and other Democrats will not agree to additional spending cuts.

She argued for potential pay freezes for federal employees and reforms to the federal food stamps program.

"There's a whole host of ideas to cut spending" without jeopardizing security, Ayotte told ABC.

However, she also said she would consider tax reform that comes with entitlement reforms. But she would not agree to revenue increases to pay for additional government spending.

Sperling declined to directly respond to criticisms that Obama has exaggerated pay cuts or furloughs for Capitol Hill janitors and Education Secretary Arne Duncan, saying that thousands of teachers will lose their jobs at a result of the drastic, across-the-board cuts, known as sequester.

Sperling argued the janitors would say less overtime equals less pay and appeared to respond to both questions by saying corporate executives will argue the cuts will slow job growth.

He also dismissed a plan backed by at least some Republicans to give the president some flexibility in the cuts.

"It's like saying you have to cut off three of your fingers but you can choose which ones."

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