President proposes to cut $4 trillion over next 12 years
It’s a week for budget cutting proposals in Washington. And, by the way, it appears the 2012 presidential campaign is fully underway.
President Obama’s much-anticipated plan builds on the recommendations of his fiscal commission and proposes to cut $4 trillion from the deficit over the next 12 years (instead of the usual 10 year program).
The president’s plan differs significantly from the House Budget Committee blueprint in that it raises taxes on Americans who earn more than $250,000 per year and limits itemized income tax deductions for people in the upper two percent of all wager earners.
House Speaker John Boehner and Budget Committee chairman Paul Ryan were highly critical of the President’s proposals.
In his speech, Obama condemned the House Republican plan for creating Medicare vouchers and turning Medicaid into a block grant program for states. For more details, see the President’s Framework for Shared Prosperity and Shared Fiscal Responsibility.
As for farm programs, it appears President Obama is pulling from the recommendations of the fiscal commission on mandatory spending programs. The commission report proposed cutting farm programs by $10 billion over 10 years.
The House GOP budget calls for a $30 billion cut in farm programs over 10 years, and deep cuts to food and nutrition programs which make up the bulk of USDA spending.
8th District Rep. Joe Walsh says he’s not buying President Obama’s proposal to sell “massive tax increases as spending cuts.”
17th District Rep. Bobby Schillling says the President “fails to acknowledge that our country has a spending problem, not a revenue problem.”
Meanwhile, Sen. Dick Durbin, a member of the Senate’s Gang of Six working on a bipartisan plan to cut the deficit, said Wednesday that a vote on increasing the federal debt ceiling will fail in the absense of a long term plan to cut the debt.