Spending Cuts, Reducing The Federal Deficit | featured news

The battle over whether tax increases can be used to cut the nation's debt flared Tuesday as the Senate's Democratic budget writer floated a possible millionaire's surtax to help cut projected deficits over the next decade. But Republican leaders flatly said no to tax increases....

Republican leaders in the House of Representatives will seek $32 billion in spending cuts from current levels this year as part of an effort to reduce a forecasted $1.5 trillion deficit.

President Barack Obama will announce a two-year pay freeze for federal employees Monday, a move White House officials say is the first of many difficult decisions that must be made to reduce the nation's mounting deficit.

The White House and Congressional leaders are weighing options for reducing the federal deficit, including a bipartisan commission that could force tax increases and spending cuts.