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U.S. President Barack Obama announced his deficit reduction plan Monday,
but congressional Republicans quickly rejected the proposal.In a White House
speech, Mr. Obama called on all Americans, including the wealthy and
corporations, to pay a "fair share" of the cost of government. He threatened to
veto any proposal that cut medical care for the elderly unless it also raises
taxes on the wealthy. Mr. Obama declared, "This is not class warfare. It's
math."
The Speaker of the House of Representatives, Republican John Boehner, says
the president's plan pits one group of Americans against another. Republicans
have said higher taxes hurt investment and economic growth. They want deficit
reduction to come entirely by cutting spending, including the cost of pension
and health care programs for the elderly and poor, called Social Security and
Medicare.
President Obama proposed higher taxes on the wealthy, cuts in some social
programs and less military spending in a package intended to reduce the huge
U.S. debt by another $3 trillion over 10 years.The president proposed $1.5
trillion in taxes, including a provision that some individuals earning more than
$1 million a year no longer be allowed to pay taxes at a lower rate than
middle-income Americans. He also calls for allowing Bush era tax cuts to expire
by the end of 2012, which would end certain tax cuts for families making more
than $250,000 a year.Mr. Obama also says he can eventually save $1 trillion by
bringing American troops home from Iraq and Afghanistan. |
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