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For anyone wondering

Posted by on Oct. 15, 2013 at 10:39 AM
  • 11 Replies

http://www.military.com/daily-news/2013/10/15/troops-next-paycheck-disappears-if-us-defaults.html

Troops' Next Paycheck Disappears if U.S. Defaults

Oct 15, 2013

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The troops will get paid on Tuesday, but the check after that could come in the form of an IOU if the nation defaults on its debt obligations, Treasury Department officials said.

Default on top of the government shutdown would cancel out the hastily-crafted legislation that brought back furloughed Defense Department civilian employees and allowed for the payment of back pay, death benefits, incentive pays, re-enlistment bonuses, veterans disability benefits and survivor benefits.

All would be eliminated if Congress and the White House fail to reach agreement on raising the debt ceiling to avoid default on Oct. 17, Treasury Secretary Jack Lew said last week.

"The United States should not be put in a position of making such perilous choices for our economy and our citizens," Lew said in testimony to the Senate Finance Committee.

A military coalition of 33 veterans' service organizations representing 5.5 million members planned to hold a rally Tuesday at the National World War II Memorial to protest the looming threat of payless paydays for the troops and cutoffs of disability and survivor benefits.

"It's all because of failed elected leadership in Washington who would rather tell you who's to blame than fix the problem," William A. Thien, national commander of the Veterans of Foreign Wars, said in a statement.

Working against the Oct. 17 deadline, Senate Republicans and Democrats were reportedly close to a deal on lifting the debt ceiling and ending the government shutdown. However, there was no guarantee the compromise would be accepted by the House.

Defense budget analysts said that the immediate problems of default and the shutdown masked the long-term challenges of getting a budget for the military passed by Congress that will include planning for the spending cuts imposed by the sequestration process.

"[Under default], the first crunch will come when the Nov. 1 payroll is due," said Gordon Adams, a Stimson Center analyst and professor at American University. "The impact for anybody drawing pay [in the military] will grow increasingly severe," Adams said. "People are probably not going to get paid for a while."

A deal to resolve default and the shutdown does not resolve the underlying issue, Adams said. 

"There's a fundamental disagreement about what the budget should be," Adams said. He explained that sequester spending levels should be "everybody's least distasteful fallback position."

Under sequestration, about $500 billion in defense spending would be cut over the next 10 years on top of $500 billion in cuts already underway. In Fiscal Year 2013, the military lost about $37 billion under sequestration, and another $52 billion in defense spending is slated to be cut in Fiscal 2014, Adams said.

"We used to view sequester cuts as a floor for defense spending. Sequester is now looking more like a ceiling," said Todd Harrison, an analyst with the Center for Strategic and Budget Assessments.

During an interview with Federal News Radio Harrison characterized the dilemma under sequestration as a choice between preserving the near-term readiness of the force or cutting modernization programs.

"There's very little clarity on the budget," Harrison said, "but the first thing they've got to accept is that cuts are coming."



by on Oct. 15, 2013 at 10:39 AM
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Replies (1-10):
gunsgirl
by Silver Member on Oct. 15, 2013 at 10:47 AM

yep!

.oOMellyOo.
by Silver Member on Oct. 15, 2013 at 10:56 AM
4 moms liked this

I was just looking for this.... I am astounded at the number of people who don't know/understand this. 

jas_momof2
by アニメの雌犬 on Oct. 15, 2013 at 11:07 AM

me too

Quoting .oOMellyOo.:I am astounded at the number of people who don't know/understand this. 



Italiancouture7
by Krystine on Oct. 15, 2013 at 11:50 AM


Quoting .oOMellyOo.:

I was just looking for this.... I am astounded at the number of people who don't know/understand this. 

Ya I just assumed this was going to happen, no one seems to understand though. Plus I highly doubt they are going to reach a deal within the next two days. Lets be honest, if they haven't reached a deal by now they probably wont anytime soon.

All I have to say is I am beyond thankful we have prepared for these types of situations. 

TonyaLea
by Silver Member on Oct. 15, 2013 at 12:17 PM
2 moms liked this

Yep.  We're bankrupt.  

Paychecks aside though, everything we are "losing" from the shutdown, all these extra free programs and perks, just show what is paid for by federal money that is unneccessary, like around here a canceld airshow at the Marine base, and a historical celebration at the National Park...both neat...but both are unneccessary when we are so far in debt.  It is time for drastic changes, time to cut all but that which is 'necessary' just like any individual would have to do if they were broke.  

Italiancouture7
by Krystine on Oct. 15, 2013 at 12:26 PM
1 mom liked this


Quoting TonyaLea:

Yep.  We're bankrupt.  

Paychecks aside though, everything we are "losing" from the shutdown, all these extra free programs and perks, just show what is paid for by federal money that is unneccessary, like around here a canceld airshow at the Marine base, and a historical celebration at the National Park...both neat...but both are unneccessary when we are so far in debt.  It is time for drastic changes, time to cut all but that which is 'necessary' just like any individual would have to do if they were broke.  

I agree. As much as we love those things we all need to buckle down and accept that this country cant afford it. Although their excuse on the air shows are that they are for recruiting purposes.. but were not really having any recruiting issues atm so I dont see the need anyways. The Government has become too comfortable with wasteful spending practices.

.oOMellyOo.
by Silver Member on Oct. 15, 2013 at 12:38 PM

I couldn't agree more. 

Quoting Italiancouture7:


Quoting TonyaLea:

Yep.  We're bankrupt.  

Paychecks aside though, everything we are "losing" from the shutdown, all these extra free programs and perks, just show what is paid for by federal money that is unneccessary, like around here a canceld airshow at the Marine base, and a historical celebration at the National Park...both neat...but both are unneccessary when we are so far in debt.  It is time for drastic changes, time to cut all but that which is 'necessary' just like any individual would have to do if they were broke.  

I agree. As much as we love those things we all need to buckle down and accept that this country cant afford it. Although their excuse on the air shows are that they are for recruiting purposes.. but were not really having any recruiting issues atm so I dont see the need anyways. The Government has become too comfortable with wasteful spending practices.


marinemami07
by Member on Oct. 15, 2013 at 1:06 PM
Thank you for posting that. If that happens we'd be in trouble. I pray the government resolved this. It's affecting alot of people. Just come to some kind of resolution! Bet they would If they didn't get paid!!
adrianna1043
by Adrianna on Oct. 15, 2013 at 1:28 PM
4 moms liked this
I know the shutdown is painful and unnecessary. I'm not jumping on the fear bandwagon. Plain and simple we're not broke, not even close. We are living at the will of some extremely juvenile politicians that don't want to concede anything. I do think we will be extremely broke if we continue to fund barbecues for every jobless helpless da both sides of the Mississippi though.
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Mrs.Brugger
by Tiara on Oct. 15, 2013 at 3:33 PM

absolutely

Quoting Italiancouture7:


Quoting TonyaLea:

Yep.  We're bankrupt.  

Paychecks aside though, everything we are "losing" from the shutdown, all these extra free programs and perks, just show what is paid for by federal money that is unneccessary, like around here a canceld airshow at the Marine base, and a historical celebration at the National Park...both neat...but both are unneccessary when we are so far in debt.  It is time for drastic changes, time to cut all but that which is 'necessary' just like any individual would have to do if they were broke.  

I agree. As much as we love those things we all need to buckle down and accept that this country cant afford it. Although their excuse on the air shows are that they are for recruiting purposes.. but were not really having any recruiting issues atm so I dont see the need anyways. The Government has become too comfortable with wasteful spending practices.


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