Obama’s ‘Rich’ Plan for Deficit Reduction
(AP) — President Obama on Monday will call for a combination of spending cuts and $1.5 trillion in new tax revenue increases that would save $3 trillion over the next decade. And he will warn Congress that if they do not give him a “balanced” package that includes tax increases for the wealthiest Americans he will use his veto and make them start again. The president will make his pitch in the Rose Garden at 10:30 a.m. and the White House promised to provide details throughout the day. The outlines of the package were disclosed Sunday night by senior administration officials who asked not to be named. They said deficit reductions will total $4.4 trillion when new cuts are coupled with the $1.2 trillion in discretionary spending reductions included in the bill signed into law by the president last month after the debate over raising the debt ceiling. The additional deficit reduction, said the officials, would come from $1.5 trillion in tax reform; $580 billion in “cuts and reforms across all mandatory programs;” $430 billion from interest savings; and $1.1 trillion from the drawdown of troops in Afghanistan, the changed mission in Iraq and caps to limit spending on future overseas contingency operations.