Defense Cuts, Fiscal Cliff Approaching, Unemployment Rate, and more...

DEFENSE CUTS SOUND ALARM FOR SAN DIEGO—With $500 billion in defense cuts looming, set to take effect on January 2 unless Congress acts to avert sequestration, San Diego and other defense communities across the country are evaluating the possible impact. Jobs and economic output are sure to be affected should sequestration be triggered and there’s consensus that San Diego won’t be immune from budget cuts.

This was the topic of conversation at my September defense conference, with direct attention on what sequestration means for San Diego as a region that’s heavily invested in national security and economically supported by a large military presence. The conference was divided into various panels to focus on issues such as small business, housing, education and acquisition, and the feedback was highly substantive. Read more here from UT San Diego.

IN CASE YOU MISSED IT. My latest column on sequestration—focusing on the global security situation and the message a hollow military sends to friends and foes alike—was featured in last week’s UT San Diego. Read it here.

OMB CALLS ON TAXPAYERS TO COVER LAYOFF NOTICES. That was the message from the President’s Office of Management and Budget as defense contractors and vendors weigh issuing layoff notices ahead of sequestration—as required by federal law under the WARN Act. OMB released a notice that companies can bill the federal government—in other words, taxpayers—for the cost of layoffs as WARN Act notices continue to be discouraged altogether by the Administration.

With San Diego’s high volume of employees in the defense industry, many in the region will be paying close attention to these developments. There are serious legal questions pertaining to OMB’s announcement and look for Congress to stay engaged on the issue.

NEW REPORT: FISCAL CLIFF MEANS HIGHER TAXES. From now until the end of the year, much of the debate in Congress will hinge on the fiscal cliff, involving matters such as sequestration and expiring tax rates. On taxes specifically, if current rates are not extended, the average household tax obligation will increase by almost $3,500 in 2013, according to the Tax Policy Center. For a middle-class family with income between $40,000 and $64,000, taxes would increase by approximately $2,000. Some of the provisions set to expire include the 2001 and 2003 tax cuts, middle-class relief from the Alternative Minimum Tax, and tax cuts implemented under the Obama Administration.

UNEMPLOYMENT REPORT OMITS JOBLESS AMERICANS. A drop in the national unemployment rate to 7.8 percent for the month of September is good news. What this rate represents is the number of Americans who are actively looking for work. Who isn’t counted that otherwise should be, you ask? Any American that is “discouraged,” meaning someone who has given up his or her job search is not accounted for in the official monthly rate.

Earlier this year, I introduced legislation to adjust the national calculation to more accurately reflect the national unemployment situation and help public officials better tailor policies aimed at creating jobs and strengthening the economy. In light of the September jobs report, including the latest confusion on filing claims, I sent a letter to House Education and the Workforce Committee Chairman John Kline, reiterating the intent of my legislation. More from The Hill is available here.

WHAT YOU MIGHT HAVE MISSED:

Military Times: Hunter and Michaud Want Explanation for China-Made Boots

UT San Diego: Hunter Pushes Improved Handling of Army Medals

Landline Magazine: Hunter Calls for FMCSA to Rethink Dismissed Tickets in CSA

UT San Diego: Insider Attacks Prompt Criticism of Afghan Strategy

CNN: Army Turned Down Afghanistan-Bound Troops Preferred Anti-IED System

Politico: Military Voting Threatens Caucuses