The Hill reports that the defense industry is anxious the fiscal cliff tax deal may increase the likelihood of Pentagon cuts:
The defense industry is worried last week’s budget deal on taxes could damage its negotiating position for the next “fiscal cliff” deadline two months from now, when across-the-board spending cuts would take effect.
The deficit debate is shifting from taxes toward spending cuts and the debt limit, where there will be more of a focus on new cuts to the Pentagon.
While the first fiscal cliff fight over taxes included the threat of massive across-the-board spending cuts, the sequel is going to be nearly all about where to cut spending. The Pentagon is the largest target outside of entitlements. …
Some defense analysts say that the shift in the Republican Party away from national security, with the rise of the Tea Party, was highlighted during the fiscal-cliff negotiations, where taxes trumped defense in importance. …
“Other issues have overtaken national security as being more important,” said Mackenzie Eaglen, a defense analyst at the conservative-leaning American Enterprise Institute.
“I think it does show how the Republican Party is no longer the party of national security, no longer a big-tent party of Reagan Republicans where a strong defense was a central tenet of conservatism.”



