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...spending and raise revenue themselves, a crude wrecking ball would knock many billions from government programs. The threat of an indiscriminate "sequester" of funds, the story went, would be so politically devastating as to scare the government into facing its fiscal responsibilities. That fantasy, in the form of the Gramm-Rudman-Hollings Act five years ago, projected a balanced budget by fiscal 1991, which begins Oct. 1. But the brutal fact is this: the nation will face a deficit of about $200 billion even if the cranky negotiations that dragged into the weekend produce a feasible deficit-reduction package...

Author: /time Magazine | Title: A Fiscal Fairy Tale | 9/24/1990 | See Source »

...shortfall for fiscal year 1991 of $250 billion, and some economists predict that if rising oil prices tip the U.S. into a deep recession, the figure could climb to $400 billion. If no agreement on the budget can be reached by Oct. 1, draconian spending cuts mandated by the Gramm-Rudman-Hollings law will go into effect, crippling every government agency from the Agriculture Department to the Pentagon...

Author: /time Magazine | Title: The Gulf: Bush's Other Summit | 9/17/1990 | See Source »

...time for statesmanship has come. This week the talks will resume in the less than luxurious setting of Andrews Air Force Base, outside Washington. Away from the press and lobbyists, White House and congressional leaders will attempt to fashion an agreement before the Oct. 1 deadline set by the Gramm- Rudman-Hollings Act. If they fail, $100 billion in across-the-board spending cuts -- the so-called sequester -- will go into effect, with $25 billion coming out of military spending and the rest from such activities as prosecuting drug kingpins, closing veterans' hospitals and suspending student loans...

Author: /time Magazine | Title: Back to The Other War | 9/10/1990 | See Source »

...Amending the Gramm-Rudman-Hollings targets. Cutting the deficit to $64 billion as the law mandates would require either the sequester or a combination of spending cuts and new taxes equal to 2% of the gross national product. Since the economy is faltering, either choice would deepen a recession. Now that American troops are in harm's way, the slash in Pentagon spending that the sequester would bring is unthinkable. Both sides are thus likely to postpone the deadline by several months...

Author: /time Magazine | Title: Back to The Other War | 9/10/1990 | See Source »

...never set my sights on this job. But I came here feeling the Reagan Administration would find a way to cut government expenditures. I don't really like living here in Washington. I didn't feel I was accomplishing anything important. But when Phil Gramm and I got together on Gramm-Rudman-Hollings in 1985, I changed my view. I thought one person could make a difference...

Author: /time Magazine | Title: Warren Rudman: The Iconoclast Of Capitol Hill | 9/3/1990 | See Source »

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