Let the political haggling begin!
President Obama will unveil a plan on Monday to cut the national debt by roughly $3 trillion over the next decade.
Obama’s plan reflects his vision for how best to put the country on a more fiscally sustainable course, so it is different in nature than the kind of legislative compromise he was trying to broker this summer during the debt-ceiling debate, a senior administration official said.
A driving principle behind the proposal is that high-income individuals and corporations should pay more in taxes than they do currently so that they will bear some of the burden of debt reduction going forward.
Indeed, in remarks on Monday morning, the president will make clear he’ll veto any debt-reduction legislation that takes “one dime away from Medicare benefits without asking the wealthy to pay their fair share,” the official said.
Obama will even introduce the “Buffett Rule” for millionaires — named after investor Warren Buffett, who has frequently argued that the very rich are not taxed enough.
The president’s debt reduction proposal is likely to placate — at least a little — those in his Democratic base who have been adamant that they want the rich to pay more and they don’t want Medicare or Social Security benefits hit. (Read: National debt: What you need to know)
The White House said last week the president’s plan will not include any Social Security reform proposals. And another senior administration official noted Sunday that the plan will not call for raising the Medicare eligibility age, which fiscal experts have recommended.
But the Obama plan is unlikely to draw much support from Republicans, who have been adamant about not wanting to raise anyone’s taxes. (Read: Where left and right actually agree)
The plan Obama will release includes some $3 trillion in savings on top of the approximately $1 trillion called for under the debt ceiling deal enacted in August.
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