Bloomberg reports the House could vote as early as today on its $554 billion defense spending bill for fiscal year 2013.

House Speaker John Boehner reiterated his position that another increase in the debt ceiling must be combined with spending cuts. Roll Call has the details.

The Daily Caller reports the federal government has spent about $70 billion on “climate change activities” since 2008.

The Washington Post says Republicans want to reform the tax code next year.

The Wall Street Journal says leaders in Greece have said the country will stop paying its debts if the EU cuts off aid. The Washington Post looks at how continued strife in Europe  is affecting U.S. and world markets.

On the opinion pages: Matthew Philips argues the coming “fiscal cliff” will drive the U.S. back into recession.

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The Hill reports the House rejected a package of spending cuts on Tuesday. Meanwhile, The Washington Post reports a reauthorization of the Export-Import Bank will likely pass.

Yesterday, President Obama gave Congress a to do list. Bloomberg, The Hill and Politico have the details.

The Associated Press says House appropriations bills exempt defense and homeland security from spending cuts. The Hill says Republican appropriators have also opted not to offset disaster relief funding.

Bloomberg updates readers on the progress of Postal Service reform.

House Speaker John Boehner says the House will act to extend tax cuts before year’s end. The Hill has the details.

The Daily Caller looks at how much former presidents will receive from taxpayers next year. (Former President George W. Bush requested the most of any of the former commanders-in-chief.)

The Washington Free Beacon says Europeans are not really revolting against austerity. The New York Times examines how new spending would be paid for in European countries.

On the opinion pages: The Wall Street Journal says its time to eliminate duplicate job training programs.

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MSNBC looks at the proposed growth of Medicare spending under President Obama and Rep. Paul Ryan’s separate budget plans.

According to The New York Times, President Obama will hand Congress an economic “to do” list later today.

The Hill reports Republicans are moving ahead with budget cuts. With one exception, it appears - The Washington Post says Republicans want to increase defense spending. Politico also says Republicans want to shield defense spending from cuts. Politico also looks at individual lawmakers’ defending home state military spending.

According to The Hill, negotiators working on the bill are pessimistic they will agree on a long-term plan to reauthorize highway spending.

The New York Times examines one city’s effort to cut spending.

The Washington Post says, with the new government in Greece, there is another chance the country won’t meet its deficit reduction targets and will be kicked off the Euro. The New York Times has more on Greece.

On the opinion pages: The Wall Street Journal says the House should vote against reauthorizing the Export-Import Bank while Ken Kamen takes a look at what Congress might get done in a lame duck session.

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Now what? Under the Budget Control Act passed in August, a set of “automatic” spending reductions, totaling $1.2 trillion over nine years, is supposed to kick in starting in January 2013 — a consolation prize, some observers assume, given the committee’s failure.  After all, for any carrot and stick approach to work, there has to be real consequences for failure.

But, it’s not much consolation when we consider that this week the House of Representatives is already trying to find a way out.  You see, nearly half of these aforementioned cuts are suppose to come from defense spending.  After all, in an inforgraphic we put together last September, we documented that the U.S. spent over 40 percent of all defense spending–in the world.

Republicans in the House of Representatives want to keep spending that way.  So today at 2 pm, the House of Representatives’ Budget Committee will consider legislation that would stop the scheduled automatic reductions and replace it with a plan that doesn’t cut defense spending.  Here is the simple fact: as of last year, the United States’ defense spending consumed nearly 20 percent of total government spending.

If Congress is going to get serious about cutting spending, they have to keep everything on the table, including defense.  Some have claimed that cutting defense spending  would amount to taking a “meat ax” to our defense capabilities. The metaphor is intended to suggest that the cutting is indiscriminate (although if you’ve ever watched a butcher at work, you know how skillfully he can wield his tools to cut out the fat and unnecessary tissues to leave the best cut of lean meat, which would be a worthy goal).

Perhaps more appropriate metaphor would be to consider that the federal budget right now is a sick patient, and a surgical intervention is needed to put him on the course toward a healthy future. But, that’s going to require leadership and keeping all options to cut spending on the table and not trying to find an easy way out.BA

Federal Reserve Chairman Ben Bernanke said the White House and Congress are driving the country off a “fiscal cliff.” Politico has the details. Meanwhile, according The New York Times, the Fed has cut its growth projections for 2013 and 2014.

The Washington Post previews the upcoming House battle over defense spending. Politico looks at the upcoming spending fight in general, and wonder whether a government shutdown is on the horizon.

The Senate has passed a bill to reform the U.S. Postal Service. Bloomberg, The New York Times and The Washington Post have the details. Politico looks at the difficulties of passing reform.

The Washington Post looks at budget problems in Europe.

On the opinion pages: George Will discusses Illinois’s fiscal problems; David Indiviglio tries to figure out how much TARP will cost taxpayers; and John C. Goodman says Social Security is going broke.

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Medicare’s trustee report is expected to be released today, highlighting the organization’s struggling finances, reports CNBC.

The Associated Press says the weak economy is putting a stress on Medicare and Social Security.

The New York Times reports the Government Accountability Office is calling out a wasteful spending program that is part of Medicare.

On the opinion pages: Robert Samuelson says the meltdown in Spain could hurt the entire world economy while John Feffer looks at defense spending.

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4. Political Cartoon: GSA Scolding

3. ”The IRS is very into social media now. They have five different Twitter accounts. And while you may not be following them, they are definitely following you.” –Jimmy Kimmel

2. Political Cartoon: Another Conference

1.  ”In case you’re wondering where your tax dollars go, 21 percent goes to Medicare and Medicaid, 20 percent to social security, 20 percent to defense spending, and the other 39 percent they squander.” –Jimmy KimmelBA

And all I have to say to that is, what a waste.

With our current debt approaching $16 trillion dollars, both political parties in Washington are using all of their political capital, all of their talking points and all of their effort this week to argue over $47 billion over ten years. Meanwhile, the real drivers of our debt remain Social Security, Medicare, Medicaid, and Defense spending.  Surprise, Surprise, none of those policies are being talked about in the current debate, despite the fact that they account for 61% of our spending this year.

It’s time to have an adult conversation about our economic troubles. Washington continues to squabble over tiny fractions of our debt while ignoring the elephant in the room, entitlements.

We need realistic solutions that are equal to the size of our challenges. Let’s stop arguing over small-minded solutions and tackle the real problem of entitlements. But, that doesn’t seem to be Washington’s attitude; instead, Washington continues to waste their time and our money.BA

What Santorum said:  ”I put together a specific plan that cuts $5 trillion over five years, that spends less money each year for the next four years….  I actually had experience in tackling some of the toughest problems we have in this country: the growth in entitlement spending….  When I was born, less than 10 percent of the federal budget was entitlement spending, it’s now 60 percent of the budget.  Some people have suggested defense spending is the problem.  When I was born, defense spending was 60 percent of the budget.  It is now 17 percent.  …Defense spending will not be cut in my administration.”  Santorum went on to discuss the need to reform the Medicaid entitlement program.

Our take:  Mandatory spending, which is sometimes referred to as entitlement spending, took up 56% of all federal spending in the last fiscal year.  Although Santorum mentioned the need to reform Medicaid and food stamps, he left out the most expensive ones:  Social Security and Medicare.  Suggesting that defense spending is not part of the problem is a stretch.  Defense spending was the second largest line-item in the federal budget last year, so to act like it is a small part of the federal budget, is inaccurate.

What Romney said:  ”I am going to go through every single program and ask if we can afford it….  I’m going to cut the [federal] employment by 10 percent, and I am going to link the pay of government workers with the pay in the private sector….”  Romney went on to discuss the need to reform the Medicaid entitlement program and federal housing programs by sending them to the states.

Our take:  Although it is a start, cutting federal employment and lowering federal wages is a drop in the ocean when you look at the federal government’s finances.   The simple reality is that the largest expenditures in government as of last year are:  Social Security,  Defense, Income Security, Medicare and Medicaid, respectively.  Without seriously addressing these programs, the U.S. will never get its spending under control.

What Gingrich said:  ”…You have to have jobs and economic growth to get back to a balanced  budget.  …The leading developer of North Dakota oil estimated recently that if we would open up federal land and offshore, you would have $16 – 18 trillion in royalties to the federal government in the next generation.  …We need to reform government.”

Our take:  Although economic growth will help the government improve its financial shape, growing the economy alone will not solve the spending problems of America.  With 10,000 baby boomers retiring every day, programs like Social Security and Medicare are rapidly growing.  And growing the economy does not address the structural reforms that are badly needed and simply prolongs the inevitable problem, which we all understand makes it grow worse. 

What Paul said:  ”I have never voted for a budget deficit.  I never voted to increase the national debt.  …There is only one appropriation bills I have voted for….”

Our take:  Like the others, Paul didn’t seriously address how he will address the largest federal expenditures.  To be fair, the moderator altered the question for Paul so he didn’t necessarily have a fair shot to respond. In the past, Paul has offered detailed examples of how he would decrease government expenditures.BA

The Wall Street Journal and The Washington Examiner say the U.S. could reach the statutory debt limit before the end of the year.

Bloomberg, CNN, Politico, Reuters and The Wall Street Journal report the House and Senate could vote today on extending jobless benefits and the 2011 payroll tax cut. The Federal Eye blog and The New York TImes look at how Congress’s is paying for the bill.

According to The Washington Times, the Congressional Budget Office believes unemployment benefits can contribute to joblessness. USA Today says the CBO also believes unemployment will remain above 8 percent until at least 2014.

The Washington Post says the Pentagon is fighting against automatic defense spending cuts that are supposed to start in 2013.

The Hill reports Treasury Secretary Timothy Geithner said the Obama Administration didn’t embrace the Bowles-Simpson commission’s recommendations because the cuts outlined for defense and Social Security were too deep.

The New York Times outlines the White House’s strategy for implementing “the Buffet rule.”

The Financial Times says U.S. taxpayers will end up subsidizing the recent mortgage deal between U.S. banks and distressed homeowners.

The Economist asks whether America is over-regulated.

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