Barack Obama today called for additional one billion in 3200 to reduce the deficit over the next ten years, with 1.5 trillion dollars in tax increases, mainly on the rich. His plan also includes the 1.1 trillion dollars in savings from winding down the wars in Iraq and Afghanistan and $ 580 billion in savings as a result of "mandatory" programs, including $ 248 billion in cuts Medicare, but significantly, no increase in the eligibility age for Medicare, and no cutting social security.Contrary to earlier press reports, however, Obama's plan sends Joint Committee of Congress on deficit reduction of the so-called super-Committee does not include a special charge of new millionaire. Instead, administration officials said in a briefing with journalists Sunday night, Obama will seek a tax reform should be based on five principles and one of them will "rule Buffett" in honor of Berkshire Hathaway CEO Warren Buffett, who complained for years that it pays tax at a lower price. that the Secretary made a formal rule like this: ". People who earn more than $ 1 million do not pay a smaller share of their income in taxes than middle class people pay "The other four principles of tax reform, he said, is that tax reform should reduce prices, reduce the deficit (in other words, raise taxes) with $ 1.5 billion over 10 years, close "loopholes and wasteful tax breaks" and "creating jobs and increase growth. "
Republicans also favor tax reform and lower interest rates, but ruled out any increase in new revenue. On Thursday, the Speaker of the House, John Boehner (R-Ohio) said tax increases "on the table." In an interview on NBC Meet the Press in Show Sunday dismissed Senate Mitch McConnell, Minority Leader (R-KY) any consideration of tax increases as "a bad thing to do in the midst of an economic slowdown."
August, a political agreement, which led to the country's debt ceiling, debt and avoid default, the Treasury created the Super Committee and charged with the thanks of a plan to cut at least $ 1.2 trillion to a deficit of more of 10 years. Super-committee of six Democrats and six Republicans, and if a deadlock, or the final product of Congress voted down or vetoed by the Obama-automatic budget cuts would kick Republicans require $ 1.2 trillion would come only from cuts spending, including the qualification program. But administration officials said Obama makes his embrace of the Medicare cuts contingent on tax increases is also included. "He says that pull any bill that takes a single penny of retirees rely on Medicare to ask the rich and the largest company to pay its share,''said the official preview of Obama's remarks.
In a move that should please his troubled Democratic base that excludes its proposals of Obama on any changes to social security, including a reduction in inflation adjustments for recipients of cash assistance that were part of a majority, he tried to hit with Boehner in July "is his vision, not a legislative compromise," an administrative officer said. "It is intrinsically different from the form of good business, he continued to work with the President." A higher age for Medicare eligibility were also seen as part of trade failed with Boehner.
In the preview, Sunday night, administration officials plan to cast Obama as a total of $ 4.4 billion in reductions, including cuts that were made net loss in discretionary spending in the August agreement and potential savings of interest expense. (While the Republicans are sure to save Obama rejects the account of the war, did the same deficit in their plans.) Moreover, a government official said, the $ 4.4 billion is net of expenses of $ 447 000 Obama million "jobs" proposal, a package of reductions in labor costs, infrastructure spending, unemployment insurance and to attack the country's stubbornly high unemployment rate of 9.1%.
Obama proposed to pay, even with the increase in taxes, the Republicans have left, including the mutual border, charity and other reductions in well-off, the removal of relief "profits" tax to enjoy the hedge funds and other partnerships and the repeal of various tax preferences enjoyed by the oil and gas producers like Exxon Mobil, Chevron and BP.
In fact, most of the tax proposals of Obama, apparently to repeat it did before. For example, $ 800 billion just to let the Bush tax cuts for families earning more than $ 250,000 will expire at the end of 2012, which means that the highest rate on ordinary income as wages increase by 35% to 39.6%. Last month, a New York Times, place-ment, Buffett called for both a higher tax on income over $ 1 million and other income of more than 10 million. Published reports over the weekend variously suggested Obama approves a price or release a new millionaire so to propose a minimum tax on millionaires to say to replace the current complicated alternative minimum tax. But Sunday night, the head of the administration said Buffett rule was simply a matter of principle of tax reform.
Most people who earn more than $ 1 million are already taxed at a higher rate than their secretaries effective. In 2008, for example, taxpayers with adjusted gross incomes of $ 1 million and $ 10 million paid on average 24.5% of your adjusted gross income for federal income tax, compared to an average of 12 , 6% for those earning $ 100 000 to $ 200 000 and 8.4% for those earning $ 50 000 to $ 100 000. But the 400 highest income taxpayers do not pay a lower effective only millionaires, an average of only 18.1% in 2008. This is because the top 400 get most of their income from capital gains taxed at a rate greater than 15%, expected to reach 20% when the Bush tax cuts expire at the end of 2012. If tax reform is to ensure that millionaires pay a higher rate than the average middle class and high efficiency, which should reduce or eliminate the breakdown of capital gains, something that was done in the Reagan tax reform of 1986 , but not sit well with most Republicans today
