Current federal workers wouldn't see much change under the framework budget leaders proposed Tuesday for the next two fiscal years, but new hires would see more of their paychecks going to pension contributions. Federal employees hired on or after Jan. 1, 2014 would pay 4.4 percent of their salary toward retirement benefits, a summary (.pdf) of the budget bill (H.J. Res. 59) says. Currently, feds pay 3.1 percent into pensions.
House and Senate budget leaders Tuesday night unveiled an budget agreement that would set federal discretionary spending at more than one trillion annually for current and next fiscal years and replace sequestration cuts. The deal would also cut the deficit by $23 billion while not raising taxes, House Budget Committee Chairman Paul Ryan (R-Wis.) said during a press conference.
Leaders of the Senate and House Armed Service Committees said Monday they've found agreement in a bipartisan defense authorization for fiscal 2014, but prospects for the compromise measure aren't straightforward.
The bicameral congressional budget committee reaches its self-imposed deadline for producing a one year budget framework in five days--and in an unusual twist, lawmakers are hopeful a deal will be reached.
"There is broad agreement that the sequestration cuts are poorly designed. But policymakers would be well-advised not to replace one set of harmful cuts with another set of harmful cuts," the Washington, D.C.-based think tank says in a November report.
Just before leaving for Thanksgiving break, the Senate dealt a body blow to the bill that sets Defense Department spending levels, leaving it in peril as the legislative calendar for the year winds down.
With the self-imposed deadline to finish up fiscal 2014 budget negotiations looming, there's no sign that the budget committee created after the October government shutdown will strike a deal. The budget conference deadline hits Dec. 13, but there aren't immediate consequences until Jan. 15 when funding from the continuing resolution that reopened the government in Oct. runs out.
The council, composed of tax professionals and academics, says budget cuts have driven up the cost of compliance for taxpayers, because fewer resources are available for the IRS to produce clear regulations and provide assistance to taxpayers.
Defense Department costs between 2014 and 2021 will increase far beyond the caps set by the Budget Control Act, Congressional Budget Office analysis of the DoD future years defense plan report. The CBO conducted its projection of DoD base budget costs and said it would be about $30 billion higher than the DoD projected in the FYDP.
Sequestration will hit harder in fiscal 2014 than it did because cuts will be larger and one-time fixes that mitigated the impacts last year cannot be used again, a Nov. 21 Center for American Progress report says. Sequestration will cut $24 billion more in 2014 than it did in 2013, because Congress partially repealed the 2013 sequester in the American Taxpayer Relief Act, the report says.