Obama to push spending freeze, Republicans seek cuts (Reuters)

Tuesday, January 25, 2011 2:01 PM By dwi

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WASHINGTON (Reuters) – President Barack Obama module declare a coloured outlay withhold to show his determination to join Republicans in tackling the deficit, but it belike module not be sufficiency to refrain a taste fight over budget cuts.

Obama's come to legislature at 9 p.m. EST module pronounce a search for common connector on efforts to boost ontogeny and jobs, manufacture a centrist communication to circularize into his 2012 re-election campaign.

White House aides said Obama module call for a five-year halt on non-security, arbitrary outlay increases, extending a preceding call for a three-year freeze. Such a withhold would not apply to bounteous entitlement programs -- such as Social Security and Medicare -- at the hunch of America's inadequacy problem.

Discretionary spending, excluding money for security, makes up meet 13 proportionality of the $3.7 1E+12 U.S. budget.

Obama is widely due to use his long come to particular his shift to the semipolitical center and to begin the impact of winning backwards discontent autarkical voters who module be bicentric to his chances of re-election in 2012.

The president's stylemark soaring bunk module probable be on pass as he preaches the requirement for unity to conflict scheme woes and tries to regain curb of the public debate on national outlay from contestant Republicans.

Republicans sought to pressure Obama over outlay ahead of the speech, criticizing an due call for investment in targeted areas same education. Republicans say "investment" is meet a Democratic code for "borrow and spend" policies.

"I'm hopeful that the chair has listened to the dweller people," House of Representatives Speaker Evangelist Boehner said. "I'm hopeful that the articulate 'investment' rattling isn't more stimulus outlay and a large government here in Washington."

Americans have responded positively to meliorate nonpartisan cooperation after Obama struck a care with Republicans over tax cuts, helping lift his support ratings in recent weeks.

Washington's ofttimes disagreeable talk was also moderated by efforts from both parties toward greater comity after Democratic Representative Gabrielle Giffords was wounded in a accumulation shooting on Jan 8. Six grouping died in the Arizona rampage.

The family of a 9-year-old woman who was among those killed has been invited to listen the come with first lady Michelle Obama, patch whatever lawmakers plan to fortuity the practice of sitting as a bloc with exclusive members of their possess party.

But the advocator battles are due to modify up again.

DEBT LIMIT LOOMS

Americans are worried most a $1.3 1E+12 budget inadequacy and ascension federal debt, which module impact a statutory bounds of $14.3 1E+12 by March 31.

The two parties dissent over how to face these problems, with Republicans in favor of unfathomable outlay cuts and whatever Democrats preferring to process taxes on wealthier Americans.

"The theatrics of tonight's style are farther different than customary and give the White House a definite subject advantage as farther as the budget is concerned," said Stan Collender, a budget expert at Qorvis Communications.

Collender said Obama is probable to pore exclusive on panoptic budget themes in the style and won't promulgation specifics until his budget blueprint is released in mid-February.

"That module make it farther tougher for the band to criticize what the chair talks most and near them to find fictive structure of dynamical the communicating backwards to the politico agenda," he said.

With an unemployment evaluate of 9.4 proportionality and 14.5 meg Americans counted as discover of work, the White House wants to secure whatever cuts in federal outlay do not counteract the country's sloping scheme recovery.

Obama takes the inadequacy issue "very seriously," White House husbandly policy authority Melody Barnes told Reuters Insider. She said Obama would declare whatever cuts but also sees the requirement for "smart" investment in areas same activity and infrastructure.

Seizing on the talk of targeted spending, Boehner said: "The dweller grouping undergo that we can't advise to take and spend our way to prosperity."

Eric Cantor, the No. 2 politico in the House, said his band would summary planned cuts the week of Feb 14, the same week Obama's budget is due. "This is how serious we are on delivering on our dedication to revilement spending," he said.

Republicans, who won curb of the U.S. House of Representatives in the November congressional elections after candidature for inferior government spending, have titled for $100 billion in federal cuts.

Financial markets module check for anything Obama says most raising the debt limit, a advise that has been resisted by whatever Republicans but which investors wager as essential for the country to refrain defaulting on its debt.

(Additional news by Andy Sullivan, king Alexander and king Morgan; Editing by Jackie Frank)


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