Obama Plan Reduces Deficit $4 Trillion In Twelve Years
With a combination of spending cuts and tax increases, President Obama proposes lopping $4 trillion off the deficit over the next 12 years.
Over the next five years, the administration forecasts the government will pile up a cumulative deficit of $3.8 trillion; over the decade, the cumulative deficits would rise to $7.2 trillion. With today’s proposal, Obama is going beyond the fiscal 2012 budget he presented on Feb. 14, which forecast cutting the deficit by $1.1 trillion over a decade.
As with his budget, Obama in his latest plan calls for ending the Bush-era tax cuts for the wealthiest Americans, which are set to expire in 2012…
To achieve his new goals, the president is urging Congress to pass a “debt failsafe” that would trigger across-the-board spending cuts and tax changes if the debt-to-GDP ratio hasn’t stabilized by 2014, according to an administration fact sheet. The automatic cuts wouldn’t apply to entitlements, including Social Security, Medicare, and programs intended for low-income Americans.
The plan would target government spending, from the Pentagon to the Department of Agriculture. Obama proposes saving $400 billion in current and future defense spending.
Republicans continue to insist they won’t accept any tax increases as part of a plan.Click here for reuse options!
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