19 am local time, U.S. President Barack Obama announced $ 3 trillion long-term deficit reduction plan, including $ 1.5 trillion tax increase plan.
However, before the announcement of the plan, the White House constantly leaked, said it plans to include the “middle class tax breaks to cancel specific” and “tax the rich” and increase measures to Republicans deficit reduction plan is not new news first off, that this is not an open plan, but rather with the congressional Republicans to “pull position expedient.”
tax increases on the wealthy
Obama’s new program designed to reduce the deficit within the next 10 around $ 3 trillion, of which about half of the 1.5 trillion dollars will be achieved through tax increases, while the goal is to raise taxes wealthy American individuals and companies.
few days ago, House Majority Leader John Boehner just said, ruled out raising taxes to reduce the deficit through the practice, but in the Democrats’ to take a tougher stance against the Republican Party “, driven by voice Obama really raise taxes in the new program targeting the most important part of the very rich.
new deficit reduction plan through the implementation of the main features of tax reforms, the new $ 1.5 trillion income, including termination of the Bush era after 2013 the introduction of more than $ 250,000 of income tax cuts the family, this move is expected to increase $ 800 billion of tax revenue, including the removal of oil and gas company, investment fund managers, aircraft owners and enjoy tax benefits and other income groups.
the remaining deficit reduction measures, including cuts in the federal Medicare and Medicaid programs and mandatory spending, including agricultural subsidies total $ 580 billion. In addition, from Iraq, Afghanistan and the gradual withdrawal of troops, saving $ 1.1 trillion.
At the same time, White House officials said the increased interest income by $ 430 billion, cutting the deficit within the next 10 total or more.
major deficit reduction provisions of the familiar. In fact, Obama has just made the $ 447 billion stimulus plan will pay for the increase of employment plans, the most important measures, including restrictions on earning more than $ 200,000 in personal income over $ 250,000 and the home mortgage is deducted from the tax interest and charitable donations (tax credit equivalent to the rich tax-free limit), to increase $ 400 billion; In addition, there are some new ideas, the so-called “carried interest” (including private equity executives, hedge fund managers and real estate investors’ profits) pay higher ordinary income tax to replace the original lower capital gains tax, an increase of about $ 18 billion revenues; limit the amount of local bonds and other interest.
bipartisan deficit reduction War broke out
Obama plan will be 1123 before the deficit reduction plan submitted to the Congress responsible for deficit reduction negotiations, “Super Committee “, which is Obama’s fourth deficit reduction plan. It is foreseeable that within the next two, the White House with Congress on how to reduce the deficit negotiations seesaw.
18 evening with White House officials said the plan does not include people up to enjoy the Medicare provisions of the minimum age requirement, nor will social security be adjusted. If the final deficit reduction plan does not raise taxes on high income groups the terms, then Obama will veto any reduction in terms of medical benefits.
the official said, Obama’s new plan is different from the current 7 to prevent the government debt default version after consultation with Bona. The new plan amounted to $ 1.5 trillion tax increase with this 7 Boehner expressed willingness to consider, compared with $ 800 billion, almost doubled. Obama said the tax increase that rate, the Republicans have also expressed opposition to tax increases collective plan.
“class struggle may be really good political trickery, but the economy is very bad. “House Budget Committee chairman, Republican Congressman Paul Ryan of Wisconsin said,” class struggle will make the country more divided, blow job creators, split the public, but will not stimulate economic growth. “
Obama administration and Republicans in Congress has been how to restore the economy, reduce unemployment, and dealing with issues such as long-term dispute over the deficit. Obama predicted that U.S. economic growth this year will be 1.7%, the average unemployment rate remained at 9.1%, the beginning of 2012 presidential election will not be much change.
