News / USA

President Obama to Release Deficit-Cutting Plan

President Barack Obama promotes a new jobs plan before a joint session of Congress at the Capitol in Washington, DC, September 8, 2011.
President Barack Obama promotes a new jobs plan before a joint session of Congress at the Capitol in Washington, DC, September 8, 2011.
Michael Bowman

As President Barack Obama prepares to announce a plan to slash U.S. government deficits by trillions of dollars, a powerful Republican lawmaker is already criticizing key components reportedly contained in the proposal. Efforts to get more federal revenue from the wealthy and large corporations is likely to be a focus of partisan debate between now and next year’s general election.

The president’s deficit reduction plan will be released Monday. News reports quote White House officials as saying Obama will propose spending restraints and revenue enhancements to slow the growth of the national debt in coming years.

The president has already stated his willingness to trim domestic spending and contain rising costs for programs that provide health care for retirees and the poor. He has also advocated ending tax breaks for favored corporate sectors, and raising taxes paid by America’s wealthiest citizens.

Speaking in North Carolina last week, Obama said the nation has decisions to make.

“Do you want to keep tax loopholes for oil companies, or do you want to renovate more schools and rebuild more roads and bridges so [that] construction workers have jobs again? Do you want to keep tax breaks for multi-millionaires and billionaires, or do you want to cut taxes for small business owners and middle class families?”

The president’s plan reportedly contains a so-called “millionaires tax.”  Many of America’s richest earn investment income that is taxed at a lower rate than most wages and salaries. Legendary investor Warren Buffet, one of the world’s richest men, has pointed out that he pays a lower tax rate on billions of dollars of investment income each year than his salaried personal secretary.

Obama has repeatedly stated that everyone must “pay their fair share” of taxes to improve America’s finances and fund badly-needed infrastructure projects and other programs.

But Republicans oppose any tax hikes, particularly during a time of economic weakness. Paul Ryan, chairman of the Budget Committee in the Republican-controlled House of Representatives, said “If you tax something more, you get less of it. If you tax job-creators more, you get less job creation. If you tax investment more, you get less investment.”

Ryan spoke on the Fox News Sunday television program. He said the president’s debt reduction plan, as it is currently being reported, will pit groups of Americans against each other and harm an already-fragile U.S. economy.

“It looks like the president wants to move down the class warfare path. Class warfare will simply divide this country more. It will attack job creators.”

The congressman did give Obama credit for a willingness to extract savings from Medicare and other so-called “entitlement programs.” But he said, so far, the president’s ideas do not go far enough to cut costs and put those programs on a sustainable budgetary path.

A fellow Republican, House Majority Leader Eric Cantor, recently suggested that areas where Democrats and Republicans cannot agree will likely be set aside until after next year’s election. President Obama says, at a time of economic weakness and stubbornly-high U.S. unemployment, there is no excuse for delay.

“A faction in Washington may be content to wait until the next election to do anything. But I have news for them: the next election is 14 months away. And the American people do not have the luxury to wait that long.”

Earlier this month, the president unveiled a new jobs plan that would cut taxes paid by wage earners and employers that hire new workers, and boost domestic infrastructure spending. If no new sources of federal revenue are agreed to, Obama has suggested adding the $447 billion dollars needed to fund his proposal to the work of a bipartisan congressional deficit committee already charged with trimming the deficit by $1.2 trillion dollars over the next 10 years.

You May Like

UN Fears Rights Violations in China-backed Projects

UNHCHR investigates link between financing development and ignoring safeguards for human rights More

Boko Haram Violence Tests Nigerians’ Faith in Buhari

New president has promised to stem insurgency; he’s scheduled to meet with President Obama at White House July 20 More

Social Media Network Wants Privacy in User’s Hands

Encryption's popularity in messaging is exploding; now it's the foundation of a new social network More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Making Music, Fleeing Bombs: New Film on Sudan’s Internal Refugeesi
X
Carolyn Weaver
July 06, 2015 6:47 PM
In 2012, Sudanese filmmaker Hajooj Kuka went to make a documentary among civil war refugees in Sudan’s Blue Nile and Nuba Mountains region. What he found surprised him: music was helping to save people from bombing raids by their own government. VOA’s Carolyn Weaver has more.
Video

Video Making Music, Fleeing Bombs: New Film on Sudan’s Internal Refugees

In 2012, Sudanese filmmaker Hajooj Kuka went to make a documentary among civil war refugees in Sudan’s Blue Nile and Nuba Mountains region. What he found surprised him: music was helping to save people from bombing raids by their own government. VOA’s Carolyn Weaver has more.
Video

Video Rice Farmers Frustrated As Drought Grips Thailand

A severe drought in Thailand is limiting the growing season of the country’s important rice crop. Farmers are blaming the government for not doing more to protect a key export. Steve Sandford reports from Chiang Mai, Thailand.
Video

Video 'From This Day Forward' Reveals Difficult Journey of Transgender Parent

In her documentary, "From This Day Forward", filmmaker Sharon Shattuck reveals the personal journey of her transgender father, as he told his family that he always felt he was a woman inside and decided to live as one. VOA’s Penelope Poulou has more.
Video

Video Floodwaters Threaten Iconic American Home

The Farnsworth House in the Midwest State of Illinois is one of the most iconic homes in America. Thousands of tourists visit the site every year. Its location near a river inspired the design of the house, but, as VOA’s Kane Farabaugh reports, that very location is now threatening the existence of this National Historic Landmark.
Video

Video Olympics Construction Scars Sacred Korean Mountain

Environmentalists in South Korea are protesting a Winter Olympics construction project to build a ski slope through a 500-year-old protected forest. Brian Padden reports that although there is strong national support for hosting the 2018 Pyeongchang Winter Olympics, there are growing public concerns over the costs and possible ecological damage at the revered mountain.
Video

Video Xenophobia Victims in South Africa Flee Violence, Then Return

Many Malawians fled South Africa early this year after xenophobic attacks on African immigrants. But many quickly found life was no better at home and have returned to South Africa – often illegally and without jobs, and facing the tough task of having to start over. Lameck Masina and Anita Powell file from Johannesburg.
Video

Video Family of American Marine Calls for Release From Iranian Prison

As the crowd of journalists covering the Iran talks swells, so too do the opportunities for media coverage.  Hoping to catch the attention of high-level diplomats, the family of American-Iranian marine Amir Hekmati is in Vienna, pleading for his release from an Iranian prison after nearly 4 years.  VOA’s Heather Murdock reports from Vienna.
Video

Video UK Holds Terror Drill as MPs Mull Tunisia Response

After pledging a tough response to last Friday’s terror attack in Tunisia, which came just days before the 10th anniversary of the bomb attacks on London’s transport network, British security services are shifting their focus to overseas counter-terror operations. VOA's Henry Ridgwell has more.
Video

Video Obama on Cuba: This is What Change Looks Like

President Barack Obama says the United States will soon reopen its embassy in Cuba for the first time since 1961, ending a half-century of isolation. VOA White House correspondent Luis Ramirez reports.
Video

Video Hate Groups Spread Influence Via Internet

Hate groups of various kinds are using the Internet for propaganda and recruitment, and a Jewish human rights organization that monitors these groups, the Simon Wiesenthal Center, says their influence is growing. The messages are different, but the calls to hatred or violence are similar. VOA's Mike O’Sullivan reports.
Video

Video Blind Somali Journalist Defies Odds in Mogadishu

Despite improving security in the last few years, Somalia remains one of the most dangerous countries to be a journalist – even more so for someone who cannot see. Abdulaziz Billow has the story of journalist Abdifatah Hassan Kalgacal, who has been reporting from the Somali capital for the last decade despite being blind.
Video

Video Rabbi Hits Road to Heal Jewish-Muslim Relations in France

France is on high alert after last week's terrorist attack near the city Lyon, just six months after deadly Paris shootings. The attack have added new tensions to relations between French Jews and Muslims. France’s Jewish and Muslim communities also share a common heritage, though, and as far as one French rabbi is concerned, they are destined to be friends. From the Paris suburb of La Courneuve, Lisa Bryant reports about Rabbi Michel Serfaty and his friendship bus.

VOA Blogs