In response to 12-Angry-Men's comment:
The President's counter-proposal include:
- $1.2 trillion in new income tax revenuewith a 39.6 percent (up from 35 percent) on income of $400,000 or more.
- $1.2 trillion in spending cutsdivided this way: $800 billion in cuts; $290 billion in interest savings due to lower deficits; $130 billion in cost-of-living adjustments - - with specific protections to preserve increases for economically disadvantaged beneficiaries. Because changing cost-of-living adjustments would also affect where people fell in various tax brackets, this move would raise $90 billion
- The $800 billion in cuts would come from $400 billion in savings to health care entitlements like Medicare and Medicaid; $200 billion in better tax revenue collection, increased financial transaction fees and reduced federal employee benefits.
- $200 billion in domestic discretionary -- annual spending on basic government functions - divided equally between defense and non-defense programs.
- At least $50 billion devoted next year to infrastructure spending and more in latter years - figures still subject to negotiation.
- A one-year extension of unemployment insurance benefits.
The President is not proposing to cut spending. He’s only proposing to reduce future spending growth . In other words, his “spending cut” is only a cut if you play the dishonest DC game of measuring “cuts” against a baseline of ever-expanding government.
Same as the phony numbers on Obamacare. Raise taxes immediately, then in year 9 of a mythical 10 year budget you supposedly trim a tiny bit of the massive expansion...
If a private sector accountant tried to fudge numbers like that he or she would be arrested.
For another laugh, get this: "$200 billion in better tax revenue collection"....
He has been in office 4 years, why didnt he get "better" collection already? Sounds like an excuse to hire tens of thousands of new IRS agents to harass citizens.
And $50 billion in stimulus...worked great in 2009 and '10, huh? Guess his crooked unions ordered him to hand over more public boodle...