On Wednesday, President Obama spoke on his new budget plans that will cut the budget by $4 trillion and reduce the deficit and also raise taxes on the wealthy. He stated that any deficit-reduction plan involves spending cuts and higher taxes. To protect his plans he proposed a “debt fail-safe” that would activate if Congress didn’t make sure the national debt would be dropped by 2014. The President wants to create a plan where the government lives within its means and can get out of the red and into the black. In a speech at George Washington University, Obama said, “We have to live within our means, reduce our deficit and get back on a path that will allow us to pay down our debt.””And we have to do it in a way that protects the recovery, and protects the investments we need to grow, create jobs and win the future.” The breakdown of the $4 trillion in cuts are: $2 trillion in spending, $1 trillion from eliminating some tax breaks and loopholes, and the remaining from lower interest payments on the national debt.
In his speech, Obama calls for bipartisanship and let the Republicans know that he will not allow medicare to be cut and the senior and disabled people who receive it to fend for themselves. “That’s not right, and it’s not going to happen as long as I am president,” he announced.
Republicans will debate later Thursday on the long-term budget plans and the outcome the cuts will have for future legislation.