A controversial list of cuts proposed by Obama's debt panel hopes to cut about $4 trillion from the U.S. deficit over the next 10 years. The report for cuts is uncompromising in that both sides the left will not like the spending cuts and the right will be unfavorable to revenue increases.
The $4 trillion dollar cut would come from a majority of spending cuts while the other will come from a reduction of tax breaks. The report basically says that this country can't afford to spend more than it takes in. Something that most households already knows but somehow the federal government doesn't seem to grasp this concept.
In order for the commission to make the official recommendations to Congress, the panel of 18 members would need 14 members to approve it. Currently, the panel only has 7 yes votes. It is expected that the commission will fail to generate the necessary votes to submit the recommendations to Congress. This is another example of wasted money and time in the federal government.
Budget strapped states are delaying tax refunds because of the economy putting a strain on its funds. States such as Hawaii, Rhode Island, New York have delayed paying its taxpayers until July which is the beginning of their fiscal year. The states are delaying these payments until it makes sure that it has enough to pay its debts.
However some states just don't have the manpower to process its tax refunds due to budget cutbacks. Therefore the delay in this case is just a slower than normal processing time to give refunds back to its tax payers.
The delay in sending out refunds is angering many of its residents. The states response to these is that they are tapping into funds left for reserves. States are budget conscience now as much as most of the public. Many people and states are trying to adjust to the economic downturn by pinching pennies and saving as much as it can.