Daily Archives: April 14, 2011

Pres. Obama Ready to Raise Taxes to Reduce the Deficit

President Obama on Wednesday the nation needs to raises taxes on the richest 2% to pay their fair share at a news conference at the White House; back tracking on the extension of the Bush Era tax cuts that he signed in December 2010. Whats worse he is demagogue the issue. Claiming people will die, go starving, etc.  right out Democratic Play book. From Washington Times:

Seeking to reassert leadership and reassure troubled financial markets that the deficit will be brought under control, President Obama on Wednesday called for tax increases and spending cuts he said would reduce deficits by $4 trillion over 12 years — and vehemently denounced Republicans’ own deficit plans as an assault on the elderly and poor.

In a speech that sounded as much like a 2012 election kickoff speech as a call to action on Capitol Hill, Mr. Obama said he wants to see a final deficit reduction deal by June, but also said the House Republican proposal on the table now is not “serious.” He drew repeated lines that he said he would not cross with Republicans on Medicare, Medicaid, and extending all of the Bush-era tax cuts.

“I will not allow Medicare to become a voucher program that leaves seniors at the mercy of the insurance industry, with a shrinking benefit to pay for rising costs. I will not tell families with children who have disabilities that they have to fend for themselves,” the president said in a speech laying out a framework for deficit reduction. “We will reform these programs, but we will not abandon the fundamental commitment this country has kept for generations.”

The GOP say the President’s plan is Dead on arrival.

Republicans, in reply, drew lines of their own, ruling out the president’s proposed tax increases. Some party members also said it was unlikely the Pentagon could absorb the $400 billion in defense cuts Mr. Obama said are possible by 2023.

“Any plan that starts with job-destroying tax hikes is a non-starter,” said House Speaker John A. Boehner, Ohio Republican. “We need to grow our economy — not our government.”

This comes after the International Monetary Fund slammed the US for its spending sprees and suggest that the US needs Austerity Programs to deal with the debt. From Financial Times:

The US lacks a “credible strategy” to stabilise its mounting public debt, posing a small but significant risk of a new global economic crisis, says the International Monetary Fund.

In an unusually stern rebuke to its largest shareholder, the IMF said the US was the only advanced economy to be increasing its underlying budget deficit in 2011, at a time when its economy was growing fast enough to reduce borrowing.

The latest warning on the deficit was delivered as Barack Obama, the US president, is becoming increasingly engaged in the debate over ways to curb America’s mounting debt.

To meet the 2010 pledge by the Group of 20 countries for all advanced economies – except Japan – to halve their deficits by 2013, the US would need to implement tougher austerity measures than in any two-year period since records began in 1960, the IMF said.

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