Responding to Republican demands for the President to “send us a proposal,” President Obama sent Congress a proposal to reduce the deficit by $4 trillion dollars. To the surprise of no one, Republicans hate it. They called it class warfare.
The President’s proposal will reduce our national debt by $4 trillion while funding the American Jobs Act, which is yet to be passed. Obama’s plan features $1.5 trillion in new revenues, $580 billion in cuts to mandatory entitlement programs, $480 savings in interest payments due to lower debt, and $1rillion in savings by bringing home military forces from Iraq and Afghanistan.
Republican’s all claim that if we cut our deficits, pay down our debt, the world will be made right once again. However, when they get a bill that reduces the debt by a hefty $4 trillion, the party of debt reduction became the party of No once again.
Obama plan raises $1 trillion in revenue
The President proposes that several reforms be enacted to the fix the tax code. One is to repeal the Bush tax cuts on families earning over $250,000 a year, which is just 2 % of the population. It also closes tax loopholes that certain elite classes of wealthy taxpayers and corporation use to pay no tax including oil companies.
The big new thing in his proposal was the inclusion of the “Buffet Rule.” This provision is named after billionaire investor Warren Buffet who decries the fact a billionaire like him pays a lower tax rate than his secretary. Obama’s idea is to have a sort of minimum tax for millionaires so even after all their deductions, they would still pay some tax.
Obama defends his proposal saying it is not class warfare“
This is not class warfare,” Obama said in the Rose Garden Monday. “It’s math.” He was referring to the Republican talking point criticism that his proposal is class warfare. We can not afford these [Bush] tax cuts, which were meant to be temporary.” I reject the notion that asking teachers, plumbers, and firefighters pay more taxes than Hedge Fund Managers is wrong. Obama said, “Fixing it is not class warfare.”
“After a decade of unchecked spending, every American has to pitch in and pay their fair share,” Obama said, “Otherwise the U.S. will try to cut programs for the middle-class and the poor while protecting tax cuts for the wealthy.”
He laid down the gauntlet to Republicans saying he would not support any bill that puts all the burden for reducing the deficit and debt on middle class and lower income taxpayers. He went on to say he would veto any bill that cut entitlements like Medicare for those who depend on them unless the bill also raised revenue from the wealthy. “We are not going to have a one-sided deal that hurts the folks that are most vulnerable.”
President takes a shot at GOP for their hypocrisy and no-tax pledge After taking relentless punches from Republicans for over 2 and half years, the President shot back today. He took a jab at House Speaker Boehner. Obama said he was encouraged to hear Boehner say Friday that a “my way or the highway” approach won’t work, but he was dismayed to hear the Speaker say in the same speech that increased revenues should be off the table. “So the Speaker says we can’t have it my-way-or-the-highway, and then basically says my way or the highway,” Obama said. “That’s not smart. It’s not right.”
The president also took aim at Republicans who signed pledges not to raise taxes. He said that most Republicans have signed pledges to lobbyist Grover Norquist to never close a loophole or raise taxes is wrong. He said “the only pledge that really matters is the pledge we take to defend the Constitution.” “They should be called out,” Obama said. “They should have to defend that unfairness.”
It is clear that the President has realized that all his efforts to seek common ground with Republicans were for naught. He sees that his attempts to compromise were futile. It has become clear that Republicans care more about returning to power by defeating him and the Democrats, and will do so at the expense of the economy and the welfare of the unemployed.
Democrats and Progressives who have given up on Republicans long ago welcomed Obama back. He will take his case directly to the people 82% of which favor taxing the wealthy more to get us out of the mess the Bush tax cuts got us into.
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