Drake Software blog for tax pros, covering tax, IRS news, and more

How will sequestration affect your state?

How will sequestration affect your state?

How will sequestration affect your state?

Sequestration:  a series of across-the-board federal cuts scheduled to occur if Congress doesn’t take actions to cut spending.  The deadline from Congress to take action is Friday, March 1.  If no action is taken and sequestration goes into effect, $85 billion in automatic budget cuts could cripple economic progress in each state. Education will take a direct hit putting thousands of teacher and teacher aide jobs at risk.  Defense-related jobs in military-heavy states such as Texas and California could take a hit, too.  And those desperate for aid to help in the recovery from Hurricane Sandy may have to do without.

Governors from across the US are helping their states prepare for whatever comes, and many cities and towns are genuinely concerned about how their local economy will be affected. Forbes.com has compiled a list of reports the White House has released, outlining the potential damage sequestration could cause for each state.  There is still time for the White House and Congress to reach an agreement, but the countdown to sequestration has definitely begun.

admin taxing_subjects