Republicans Oppose Tax Hikes
Republicans voice opposition of President Obama's new plan to cut the deficit.
In a major speech on Wednesday, President Obama proposed spending cuts and tax increases to bring down the deficit.
Republicans quickly said no to the tax hikes.
Under fire from critics who claim he's failed to lead, President Obama laid out his new plan to reduce the national deficit.
"we have to live within our means, reduce our deficit, and get back on a path that will allow us to pay down our debt," Mr. Obama said.
The Obama goal is to wipe out $4 trillion of deficit in 12 years, with debt declining as a percentage of the economy in 2015 and a fail-safe clause to force spending cuts if that target's not hit.
And for every three dollars in spending cuts, there would be one dollar in tax hikes, focused on the top brackets, plus mortgage and charitable deductions.
"We cannot afford $1 trillion worth of tax cuts for every millionaire and billionaire in our society. We can't afford it. And I refuse to renew them again," President Obama said.
Republicans said no way.
"Raising taxes is not what we need right now two days before tax day especially before we're trying to get job creators back into the game here," argued Representative Eric Cantor.
The GOP plan would turn medicaid and medicare over to the states.
The President said no way.
"I will not allow medicare to become a voucher program that leaves seniors at the mercy of the insurance industry," President Obama argued.
His plan is a four-pronged approach, including:
- saving $480 billion in medicaid and medicare by increasing efficiency and cutting spending on prescription drugs.
- at least $400 billion in savings in current and future defense spending.
- another $360 billion from mandatory spending programs like agricultural subsidies and pension insurance.
- eliminating tax cuts to the wealthiest americans.
He's sending Joe Biden to work out the nuts and bolts and the billions with a bipartisan group of lawmakers.
A deal has to be made in just two months, at least on the debt ceiling, or the government could default.