Defense Spending Set for Steep Decline
Posted at noon on Dec. 6, 2012
Tax rates and entitlement reforms have taken center stage in the “fiscal cliff” debate, but Steve Vogel reports on one area of government spending that could play a very large role in deficit reduction: defense spending.
“In the event of sequestration, the Pentagon will face an additional $500 billion in cuts over the next decade, atop the $487 billion already approved. If a deal is reached avoiding the fiscal cliff…the additional cuts will be less severe but could still amount to several hundred billion dollars over the next 10 years.”
“The civilian defense workforce of approximately 700,000 could shrink to between 500,000 and 600,000.”