Obama's $2 trillion plan consists almost entirely of spending reductions

[somone]

http://www.usatoday.com/news/washington/2011-07-14-obama-debt-ceiling_n.htm

Looking for debt deal, Obama outlines cuts
By Richard Wolf and David Jackson, USA TODAY

WASHINGTON — President Obama implored congressional leaders Thursday to reach a deal on raising the nation's $14.3 trillion borrowing limit by this weekend to reassure jittery world financial markets, and he suggested he could settle for a smaller deficit-reduction package than he originally sought.

Rather than continue to push for $4 trillion in savings over the next decade, Obama outlined a plan that would achieve roughly $2 trillion, almost entirely from spending reductions. That marks a major concession — one the president is likely to address at a news conference scheduled for 11 a.m. ET this morning.

At the same time, Senate Republican leader Mitch McConnell and Democratic leader Harry Reid forged ahead with an even smaller deal of their own, one that represents a second fallback plan. It would allow Obama to raise the debt limit and create a process by which Congress would vote in the future on spending reductions.

Two Democratic and two Republican officials with direct knowledge of the continuing negotiations offered these details on the condition they not be identified speaking about private meetings.

[BlueCheese]

1. I really don't understand this.

It's become clear that Obama prefers an increase in the debt limit with massive spending cuts to a clean increase with no strings attached.

Does this administration really believe that deficits, and not unemployment, is our biggest problem right now?

[lumberjack_jeff]

3. You do understand it. You just don't agree with it, because it's not in the public interest.

He believes that the budget deficit and not unemployment is the biggest problem, because he ain't working for you.

[WCGreen]

13. It's the perception and, since politics is all about perception, president

Obama is looking toward november 2012.

Once he regains the house and has a full head of steam, I believe he will address the needs of the rest of us.

Believe you me, I don't agree, I think this agenda is penny wise and pound foolish, but I'm not looking at re-election in sixteen months with a media dominated by falsehoods and conservative pundits.

That's the reality.

I understand it. I don't like it. I think we should continue to voice our opposition all the way into the 2012 general election and then, on election day, pull the lever for president Obama.

[KittyWampus]

24. Bullshit. The cuts aren't going to happen because the deal isn't going through.

[StarsInHerHair]

26. I double your bullshit & add donkey shit to it if he CUT S.S. he can forget

2012

[mzmolly]

32. He believes that we can't heavily invest in jobs until we tackle

the debt. This isn't a philosophical position of his, he indicated that the American people would not allow us to spend on job creation, until we reduce the debt.

[dionysus]

2. so once again, breathless speculation on shit we don't even know is true.

fire up the outrage cannon.

[roguevalley]

6. i prefer to take him at his word. he wants the fucking cuts. All

of this shit going on and everyone ignoring the wealthy. nice.

[Blue_In_AK]

11. I'm afraid you're right, RV.

All this multi-dimensional chess that people talk about, allegedly being played on our behalf, assumes facts not in evidence. Rather than fighting for "the people" -- US -- this administration (like so many before it) seems to be working only for the benefit and protection of the financial markets.


Same as it ever was...

[NorthCarolina]

21. The only coffer with substantial $$$ left in it is the Social Security trust fund. Wall St.

wants it. It's really that simple. Our government works for the Wall Street tycoons. They pay them under the table when they are in office, and they give them lucrative lobbying jobs after they leave office. All they are required to do is vote as directed by big moneyed interests. Those few that don't play along like Kucinich or Sanders are effectively marginalized.

[mzmolly]

33. The article says he isn't cutting SS or Medicare. It also says he's increasing taxes.

:shrug:

Dare I say, the headline is spin?

[inna]

16. internet forums (fori?) are all about speculation

.../discussion/venting/etc.


you have a problem with that?

[tularetom]

4. I'd rather be skeptical of the President's intentions and be pleasantly surprised

Than to believe that he would come up with a plan that would suit me 100% and then be disappointed.

So I'll once again expect the worst and hope for the best.

[Blue_In_AK]

12. My motto, as well,

although my wording is a little different (I must be more of a pessimist than you) ...

"Expect the worst, and you won't be disappointed."

[Name removed]

5. Deleted message

Message removed by moderator. Click here to review the message board rules.

[napi21]

7. You know, as much as I feel the Pubs are going about this the WRONG WAY, I'm sort of glad they

made spending an issue. DC HAS been spending too much and on lots of the wrong things. There's no reason to have millions of tax credits that are for the exclusive benefit of one corp. of one business line, OR for only one class of people for that matter. Shrub should NEVer have been allowed to start and expand wars as he did. I really don't think my bias is showing when I say ALL AMERICANS want social security and Medicare, and if those programs cost more then they would approve of a small across the board tax increase to support them.

Congress has gotten completely out of control over many years and I can't think of anything that would reign them except a group of (perhaps) crazies that is large enough to make things happen. MAYBE, just maybe, this stunt will at least prevent a lot of future knobbiest appeasement and flat out stupid spending for starters, and if we're lucky, Enough both Pubs & Dems will back off the corporate gravy train.

[baycityMI]

20. +1,000!!

[Initech]

8. It's official: by text book definition, America is FUCKING INSANE.

We are. We do not get it. All we do is cut spending, cut spending, cut spending. :argh: :argh:

All we do is go around in circles - and no one wants to address the issue of bringing in revenue. And the way to do that is to tax the fucking job creators. Because they don't create jobs. They are literally sitting on 4 trillion in cash. And they're paying no taxes on it. The rich are out of control (fuck you Reagan) and no one is stopping them.

[kenny blankenship]

10. "And you ain't seen nothing yet!"

[inna]

18. not "we".

It's "them".

Not "us", not in Our Name.

[Initech]

22. I stand corrected.

[roxiejules]

9. Defense spending

Why aren't cuts to defense spending a larger conversation of the deficit reduction proposals?

[FLAprogressive]

19. Because God forbid Obama have to make truly "tough" cuts. He might be accused of being a terrorist.

[no_hypocrisy]

14. This is the beginning.

We're discussing the spending cuts for THIS year. Next year when it's time to raise the debt ceiling again and time to draft the annual federal budget, more cuts will be on the table. Then the cuts will really be to the bone.

[Javaman]

15. We have entered into the world of teh stupid.

you are correct. The cuts won't end here and franky, if SS and Medicare aren't cut this time around they will be next time.

We will be presented with the kabuki theater hand wringing bullshit of "we saved it last year, but this year, we can't. sorry folks, your fucked. we just delayed it".

heaven help these asshole ever raise taxes on the rich.

the only think I believe is: there is a storm coming. the likes of which these politicians have no concept of dealing with.

[newportdadde]

17. Obama also is seeking to extend a payroll tax cut enacted last December...

for another year and possibly extend it to small businesses. Wonderful, now 'small businesses' will won't be paying as much either. The whole change back last December was bullshit and now this.

[KittyWampus]

23. It's already been explained what Obama's strategy here is. Those who insist on outrage for a deal

that isn't going to happen- you have to wonder what their agenda is.

[Marr]

27. I wonder more about the motives of people who urge others to just shut-up and salute

when party leaders espouse right-wing policies.

[amborin]

30. you said his strategy was to take an extreme right wing position

[mzmolly]

34. The devil is in the details vs. the misleading spin in the OP.

In Obama's $2 trillion plan, tax increases would come from a 35% limit on itemized deductions and the elimination of special-interest tax breaks for oil and gas companies, corporate jet owners and producers of ethanol. If tax rates on upper-income people returned to 36% and 39.6% in 2013, as Obama wants, the limit on deductions would save about $120 billion.

Obama also is seeking to extend a payroll tax cut enacted last December for another year and possibly extend it to small businesses. For that reason, Republicans could claim that the package is revenue-neutral rather than representing a tax increase — but at the meeting, Republicans still refused to go along.

The remainder of the package would be spending cuts and savings on interest, but not the major reductions in Medicare or Social Security that Obama had been willing to accept as part of a $4 trillion deal.

:hi:

[indepat]

25. I's all about reason, fairness, equity, and shared sacrifice: those who have paid into and earned

social security and Medicare benefits will have to sacrifice a goodly portion of their benefits so the uber-wealthy, who have been enjoying a feeding frenzy by sucking at the public welfare teat for most of the last 30 years, can continue their sucking at the public welfare teat. :patriot:

[mzmolly]

28. The plan is tax increases and protection of SS and Medicare.

"In Obama's $2 trillion plan, tax increases would come from a 35% limit on itemized deductions and the elimination of special-interest tax breaks for oil and gas companies, corporate jet owners and producers of ethanol. If tax rates on upper-income people returned to 36% and 39.6% in 2013, as Obama wants, the limit on deductions would save about $120 billion.

Obama also is seeking to extend a payroll tax cut enacted last December for another year and possibly extend it to small businesses. For that reason, Republicans could claim that the package is revenue-neutral rather than representing a tax increase — but at the meeting, Republicans still refused to go along.

The remainder of the package would be spending cuts and savings on interest, but not the major reductions in Medicare or Social Security that Obama had been willing to accept as part of a $4 trillion deal."

[kentuck]

29. This is round one...

there are at least two or three more rounds to go.

[LibwithGuns]

31. BlueDogs and Pubs Agree on many things

I just wish the BlueDogs like the current POTUS would change parties.
JMHO