The sequester comes about as a direct result of the "fiscal cliff" in December 2012. On January 1 Congress passed and President Obama signed the American Taxpayer Relief Act of 2012 (ATRA), which, among other things, pushed off the decision on how to balance the federal budget for two months. Since then, Washington has had a stalemate, with no clear decision on whether to selectively reduce spending on raise taxes to meet costs. Barring a successful resolution on Thursday night, $85 billion in cost cuts will occur by the end of the week, with subsequent reductions happening for the next decade.
Kyle A. Richardson is the editorial director of Promo Marketing. He joined the company in 2006 brings more than a decade of publishing, marketing and media experience to the magazine. If you see him, buy him a drink.