The failure of the Super Committee to reach a deal, expected to be announced today, will trigger an automatic sequester of $1.2 trillion in deficit reduction by 2013.
The sequester will be divided evenly between defense and non-defense programs (excluding social security, medicaid, and medicare but provider side cutes). The deal requires cuts to federal spending equal to $109 billion per year between 2013 and 2021.
About 42% of the savings from the automatic sequester will come from defense discretionary spending. Another 42% will come from non-defense discretionary and mandatory spending, and the last 16% will come from lower interest costs. 11% percent of the savings would result from cuts to Medicare providers.
Weigh in: Should Congress let the automatic cuts go into effect? Are these cuts fair? What impact will they have on the long-term deficit, the economy, and jobs?
Annual and Cumulative Spending Cuts Under $1.2 Trillion Sequester, Fiscal Years 2013–2021