ARTICLE
26 November 2012

Sequestration: 3-Point Bulletin

CO
Cozen O'Connor

Contributor

Founded in 1970, Cozen O’Connor has more than 925 attorneys practicing internationally in 32 cities across North America and Europe. We are a full-service firm with award-winning practices in litigation, business law, and government relations, and our attorneys have experience operating in all sectors of the economy. Our diverse client list includes global Fortune 500 companies, middle-market firms poised for growth, ambitious startups, and high-profile individuals.

The sequester will cut a percentage of the budget of most programs and federal agencies, like NIH and the Department of Education.
United States Government, Public Sector
Howard Schweitzer’s articles from Cozen O'Connor are most popular:
  • with readers working within the Retail & Leisure industries

What are the potential effects of the sequester?

The sequester will cut a percentage of the budget of most programs and federal agencies, like NIH and the Department of Education. This may lead to the direct unemployment of thousands of federal employees and contractors, and it will result in a significant impact to the U.S. economy. Along with other, non-related tax changes that will go into effect at the start of the year, the sequester would increase and prolong unemployment and cause a recession, according to the Congressional Budget Office.

What has to happen?

President Obama and a bipartisan majority of Congress have expressed a desire to advert the sequester as part of the fiscal cliff negotiations. The President and Congress are negotiating a legislative deal that in theory will defer the budget cuts that will take effect in 2013. If legislation is not passed before January 2, the cuts will go into effect. After January 2, legislation could roll back some of the cuts, but the effects to unemployment and the economy would be more difficult to ameliorate as time passes.

www.cozen.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More