Even if the “do nothing Congress” lives up to its reputation and doesn’t come up with a deal, President Obama could still soften the economic blow of the fiscal cliff.
That might seem surprising for all the dire warnings being issued by lawmakers about the pending devastation from the combined $600 billion in tax hikes and spending cuts that are scheduled to hit at the start of 2013/.../
It’s not like 2013 starts and the Defense budget is instantly dragged in front of a firing squad. The government can delay the impact of sequestration just by taking some time to pinpoint possible cuts, said Todd Harrison, a senior fellow at the Center for Strategic and Budgetary Assessments.
First, the White House OMB sends the Pentagon a memo ordering the 10 percent reduction. That would happen around Jan. 2. Then the military’s accountants toy with their spreadsheets to decide where to trim. This exercise should take long enough that any actual cuts couldn’t be implemented until February or early March.
“It really won’t be until the second-half of the fiscal year [April] that we see the real impact of this, because DoD hasn’t done detailed planning yet, and they can’t do it any faster,” Harrison said. “Don’t expect the apocalypse that has been predicted. You will be disappointed.”