Obama’s Deficit Reduction? Ha!
Ugh! Only $4T in 12 years? That is not nearly enough.
Today, President Obama gave a speech at the George Washington University and laid out his plan for a balanced approach to achieve $4 trillion in deficit reduction over twelve years, based on the values of shared responsibility and shared prosperity. The President’s approach borrows from the Bipartisan Fiscal Commission and builds on $1 trillion in deficit reductions in the President’s 2012 budget.
The President’s Framework focuses on four key pillars:
Budget Cuts. The President’s approach builds on the compromise reached last week and will save us $770 billion over twelve years.
Security Spending. Working with Secretary of Defense Gates and Chairman of the Joint Chiefs of Staff Admiral Mullen we will find $400 billion in defense savings by 2023 while ensuring that our troops have the resources they need to protect our national security.
Health Care Costs. The President’s approach to reforming Medicare and Medicaid keeps our commitments to seniors, people with disabilities, and children while reducing health care spending. By 2023, these reforms will help us save $480 billion and an additional $1 trillion in the decade after that.
Tax Reform. The President’s approach would eliminate the Bush tax cuts and limit itemized deductions for the wealthiest 2% of Americans – reducing the deficit by $320 billion over ten years. The President is also calling on Congress to reform the individual tax code so that the amount of taxes you pay isn’t determined by what kind of accountant you can afford.