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Question:


How will the sequester affect me financially as a taxpaying citizen?
-Matthew1984


Answer:


That’s difficult to say because any discussion of public finances, combined with personal finances, must entail a lot of moving parts. Also, any conversation about the sequester – across-the-board reductions in federal spending, compared with previously budgeted amounts – will verge onto the political, something that tends to make an objective analysis of any matter more problematic. So far, though, the economy seems to be suffering few, if any, ill effects from the diet that Congress grudgingly imposed on itself and the administration. Also, now that the hoopla and acrimony have died down, it may have become clearer that the sequester will result in barely more than 2 percent less spending than budgeted for this year and actually slightly more than Washington spent last year. That could have a salutary effect on you as a taxpayer if Congress – and the people that vote for its members – puts less emphasis on tax increases when crafting budgets and more on capping spending.

-Conrad de Aenlle



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