By Agence France-Presse
Monday, September 19th, 2011
An impassioned President Barack Obama set up an acerbic and personal clash with Republicans Monday, demanding $1.5 trillion in new taxes on the rich in a plan aimed at slashing the deficit.
“This is not class warfare, it is math,” Obama declared, arguing that without tax increases on those who could afford it, the budget gap, which is casting a shadow over future generations of Americans, could never be closed.
“All I’m saying is that those who have done well, including me, should pay their fair share in taxes,” Obama said in a speech that effectively staked out the ground on which the 2012 presidential election will likely be fought.
A fiery, populist Obama laid out a plan which few experts believe has any chance of passing Congress, but which will make clear the battle lines between the White House and Republicans on the lumbering economy.
“We can’t just cut our way out of this hole,” Obama, said in in the White House Rose Garden, laying out his plans to cut $3.0 trillion from the deficit with a mixture of spending cuts and tax hikes.
Obama pushes for $3.6trn deficit cut
From The Guardian UK: http://www.guardian.co.uk/world/2011/sep/19/obama-trillion-spending-cuts-buffett
Stage set for new showdown with Republicans as US president targets the rich for $1.5trn of tax increases
Dominic Rushe in New York
guardian.co.uk, Monday 19 September 2011
Barack Obama is expected to unveil plans to reduce the massive US deficit by about $3.6trn over the next decade.
The plan looks set to spark yet more confrontation with his Republican critics. Roughly half of the savings would come from tax increases, according to people briefed on the proposals. The Republican opposition is staunchly against tax hikes.
Obama will unveil the new proposals on Monday at the White House. They will be submitted to a congressional “super-committee” that was created in August to draw up a deficit-reduction plan.
The president is also expected to propose nearly $250bn in cuts to spending on Medicare, the federal health care program that primarily benefits the elderly; $330bn in cuts to other mandatory benefit programs; and underline savings of $1trn from the withdrawal of troops from Iraq and Afghanistan.
According to initial reports there would be no changes in social security and no increase in the Medicare eligibility age, which the president had considered this summer.
Obama’s plans would include roughly $1.5trn in tax increases aimed mainly at wealthy Americans and corporations, people familiar with the proposal said. The president is set to unveil a “Buffett tax” aimed at those earning $1m or more a year and named after billionaire investor Warren Buffett, a persistent critic of low tax rates for the rich.
Continue reading at: http://www.guardian.co.uk/world/2011/sep/19/obama-trillion-spending-cuts-buffett