To the next President and next Congress: Maybe Sequestration should happen after all for the long-term good
As voters go to the polls today, we’ve turned our thoughts to Sequestration and the impact on Defense budgets.
Defense sequestration is widely view as a disaster for national defense and for employment. Sequestration requires a cut of $500bn over 10 years, or $50bn a year. Spending for FY2013 is $902.3bn, according to government figures, excluding the Afghan war. A $50bn cut would be 5.5%.
We certainly acknowledge the adverse impact of cutting $50bn from next year’s budget, but we can’t help but wonder if there isn’t 5% that is “fat.” Parochially, Boeing’s KC-46A tanker is on the hit list for cuts. Given the difficulty it took in getting to this contract and the pressing need to replace the KC-135, we would hope this program would survive.
But we’re thinking on a higher plain.