Your not even close to the truth. What are you talking about? 5 percent instead of 7 percent. Are you kidding? People are losing 20 percent of their pay for the year! Government agencies might only be losing 2 percent.
The federal budget does not go down under sequestration, that is what I am saying.
By people, you mean federal government employees. Federal government employees earn, on average, 50% more than the taxpayers who employ them. If they actually did take a 20% cut (they won't), this would simply bring them down to "only" 20% more than the taxpayers who employ them.