 U.S. President Barack Obama speaks at the 113th VFW National Convention in Reno (LARRY DOWNING, REUTERS / July 23, 2012) |
RENO, Nevada (Reuters) - President Barack Obama said on Monday that there was no reason billions in across-the-board federal budget cuts should occur at the end of this year, saying lawmakers in Congress ought to agree on a balanced plan to avoid the widely feared pinch.
In a speech to veterans, Obama said it was still possible to avert the pending cuts to defense and other areas that stem from a failure to reach a deal last year to reduce the federal deficit.
"There's no reason that should happen because people in Congress ought to be able to come together and agree on a plan, a balanced approach that reduces the deficit and keeps our military strong. It should be done," he said.
A year-end deadline looms for Congress over the "fiscal cliff" of major tax hikes and spending cuts, and Republicans and Democrats need to reach a consensus in the lame duck session - the period between the November election and the start of the new Congress in January.
Without a deal, many domestic and military programs face about $100 billion total in across-the-board cuts next year.
Obama wants to end Bush-era tax cuts for very wealthy Americans to help reduce the U.S. deficit. Republicans argue that all tax cuts should be extended to avoid an adverse affect on the tepid economy.
"Let's stop playing politics with our military," Obama said. "If the choice is between tax cuts that the wealthiest Americans don't need and funding our troops that they definitely need to keep our country strong, I will stand with our troops every single time."
The comments come as business leaders, financial markets, and defense contractors have shown increased concerns about the consequences of massive federal budget cuts and tax increases that will be triggered at year's end barring action by Congress.
(Reporting by Alister Bull in RENO and Margaret Chadbourn in WASHINGTON; Editing by Jackie Frank and Philip Barbara)
