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Republicans accuse President of scare tactics in sequestration fight

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President Obama is visiting a shipyard in Newport News, Virginia today. He is warning that civilians who work on Navy ships could face layoffs if $85-billion in automatic budget cuts kick in this Friday.

Military leaders talked about how challenging the cuts will be at a Congressional hearing this morning.

With the clock ticking, it's small businesses like this communications contractor that are already bracing for the impact of the cuts, especially hits to the Defense Department.

Pedro Alfonso employs 120 workers at his facility in Washington DC. His business relies on contracts with government agencies that will see their budgets slashed.

The main sticking point between the White House and Congressional Republicans is taxes. Republicans agreed to raise taxes in the fiscal cliff deal last month, and they say that's enough. They're also criticizing the president for taking his message on the road.

Business owners like Pedro Alfonso say it's easy for Congress and the White House to criticize each other, but they're not facing layoffs and pay cuts.

A Pew Research poll shows more than 6 out of 10 Americans think the automatic cuts will have negative effect on the economy.

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