President Obama will unveil a plan this morning to reduce federal deficits by more than $3 trillion over 10 years, about half of which would come from higher taxes on upper-income Americans and corporations.
Obama — who has clashed repeatedly with congressional Republicans over higher taxes — will also pledge to veto any debt plan that cuts Medicare while not demanding more revenue from the wealthy, two senior administration officials said.
The deficit-reduction plan to be submitted to a special congressional committee would cut $1.5 trillion through tax increases; $1.1 trillion through winding down the wars in Iraq and Afghanistan; $580 billion from reductions in entitlement programs such as Medicare and Medicaid; and $430 billion from reduced interest costs.
The president will formally announce the plan during a 10:30 a.m. speech in the White House Rose Garden. He’ll pitch it as his vision for deficit reduction combined with the need to invest in jobs, education, innovation and infrastructure — not his effort to compromise with Republicans.
More details will follow — as will a largely negative reaction from Republicans opposed to higher taxes on anyone.
Obama’s proposed tax changes would include ending former President George W. Bush’s tax cuts for upper-income Americans beginning in 2013. Obama also would eliminate tax breaks and loopholes that benefit oil and gas companies, hedge fund managers, and corporate jet owners — ideas that have previously been rejected by congressional Republicans. His plan to limit deductions and exclusions for people with income above $250,000 has even been rejected by many Democrats in the past.
Source: USA Today | David Jackson