President Obama to
Spell Out Deficit Reduction Plan
September 19, 2011
U.S. President Barack Obama will announce his recommendations Monday to
reduce the federal budget deficit. The proposal calls for $1.5 trillion
in new tax revenue, including a new minimum tax rate for individuals
earning more than $1 million a year.
Media reports are calling the plan the “Buffett Rule,” named after
billionaire investor Warren Buffett, who has pointed out that he and
other super-rich Americans pay lower effective tax rates than
Senior Obama administration officials say the deficit reduction plan
includes more than $1.1 trillion savings in military spending as
American troops withdraw from Iraq and Afghanistan.
The president is making the proposal after announcing a $447 billion
job-creation plan designed to reduce the United States 9.1 percent
Both proposals are facing an uphill struggle in Congress. The Republican
Party, which controls the House of Representatives, remains opposed to
any tax increases. House Speaker John Boehner has suggested instead a
broad overhaul of the U.S. tax code and cuts in government pension and
health care programs, such as Social Security and Medicare.
Other Republican leaders say the so-called Buffett Rule will diminish
corporate investment and limit growth in a struggling U.S. economy.
president's efforts come in an increasing charged partisan atmosphere,
with a general election 14 months away, and a special Congressional
committee beginning its work on finding ways to reduce the budget
Political analysts say the president's plan has little chance of passing
unchanged, but is meant to draw contrasts between Mr. Obama and
Republicans. Republicans are already calling the tax plan “class
The Obama plan includes a provision to assist the financially strapped
U.S. Postal Service. The plan will include no changes to Social Security
and no change to Medicare age requirements.
Public approval ratings for both President Obama and Congress have been
plummeting, adding increasing pressure on both sides to work together on
ways to revive the economy and reduce the deficit.