In a speech today at George Washington University, President Obama outlined his plan to trim $4 trillion from the federal budget. Obama termed his budget proposal as “more compassionate” and less pessimistic than the Republican proposal introduced by Republican Representative Paul Ryan last week. Obama also stated that his proposal is more protective of the middle class and the elderly than the GOP proposal.
Obama’s plan would trim $4 trillion from the deficit over the next 12 years. The GOP plan seeks to trim the deficit by $4.4 trillion over the next 10 years. The major difference between the Obama plan and that of the GOP is that Obama would raise $1 trillion from tax increases on the wealthy- those making over $250,000.
Obama’s deficit reduction plan would come from the following:
- Domestic and Defense Spending Cuts $2,000,000,000,000.00
- Reduction of interest on national debt 1,000,000,000,000.00
- Increase in taxes on wealthy 1,000,000,000,000.00
Republicans have already indicated that any budget deal cannot include an increase in taxes on anyone, including the wealthy. Let the budget games begin!
For further information, please contact Ron Kramer.
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