Obama: This is Not About Class, It's About Simple Math
1 year ago
Obama has plan to cut $4 trillion from deficit
With little hope of cooperation from Republicans in Congress, President Obama released today his full plan for cutting the federal deficit over the next 10 years.
Said the White House: “The President’s Plan for Economic Growth and Deficit Reduction lives up to a simple idea: as a Nation, we can live within our means while still making the investments we need to prosper – from a jobs bill that is needed right now to long-term investments in education, innovation, and infrastructure.”
The plan, which Obama says will spur economic growth and job creation, will reduce the deficit by more than $4 trillion dollars by approximately 2017. The proposal includes nearly $580 billion in adjustments to a range of government programs including Medicare ($248 billion) and Medicaid ($72 billion). The Administration says that the eliglibilty age for Medicare benefits will not change. The president also says he will veto any bill that seeks to cut the deficit by taking from health savings without asking the rich to pay their fair share:
“It follows a balanced approach: asking everyone to do their part, so no one has to bear all the burden. And it says that everyone – including millionaires and billionaires – has to pay their fair share.”
The proposal least likely to win approval from Republicans is Obama’s call for a $1.5 trillion in tax increases primarily for wealthy Americans and big corporations. Obama is pushing for the elimination of tax breaks for the rich, while lowering tax rates in general. Basically, people making more than $1 million a year should not pay a smaller share of their income in taxes than middle-class families pay, under the proposal.
Under Obama’s plan for economic growth, $800 billion of the $1.5 trillion in tax increases would come from getting rid of the Bush-era tax cuts. However, in recent interviews, House Speaker John Boehner has said he would not support any legislation that included revenue increased in the form of higher taxes.
The Administration said the plan also figures in a savings of nearly $1 trillion with the withdrawal of American troops in Afghanistan.