The News Courier in Athens, Alabama

State and Nation

March 1, 2013

Odds against him, Obama still betting on big deal

(Continued)

Moreover, many programs for low-income Americans are protected from the immediate cuts while the Pentagon — whose budget has long been a target of the left — faces across the board cuts of 8 percent and up to 13 percent in some of its accounts.

More than 20 Democrats in Congress, including veteran Rep. Ed Markey, a candidates for the Senate from Massachusetts, have signed a letter pledging not to cut Medicare, Medicaid or Social Security benefits in efforts to reduce the deficit.

Obama's plan calls for $580 billion in new revenue over 10 years by limiting the value of itemized deductions and certain tax exclusions to no more than 28 percent. That means taxpayers with a tax rate greater than 28 percent would face a tax increase.

While Obama also regularly talks about closing loopholes to gain more revenue, his tax plan would close many corporate loopholes to lower corporate tax rates, not to generate more revenue. He aims to drop corporate tax rates from 35 percent to 28 percent for most corporations and down to 25 percent for manufacturers.

In exchange for new tax revenue and a tax overhaul, Obama has offered to reduce spending in health care programs such as Medicare by $400 billion over 10 years, change an inflation formula for government benefits that would result in lower cost-of-living adjustments for Social Security and other programs, and reduce other spending for total reductions of $900 billion over 10 years.

Those cuts, together with about $2.5 trillion in deficit reduction already achieved over the last two years through spending cuts and a year-end tax increase on taxpayers making more than $400,000 would achieve a $4 trillion deficit reduction target.

Republicans though are unimpressed, and House Speaker John Boehner rejected it when Obama first offered it in December.

"Last year we proposed generating new revenue through tax reform," Boehner said Thursday. "We did that as an alternative to the president's demand for higher tax rates. Ultimately, the president got his revenues and he got it his way through higher rates. Given those facts, the revenue issue is now closed."

Text Only
State and Nation
Photos


Poll

Do you believe America will ever make another manned flight to the moon or another planet?

Yes
No
     View Results
Facebook
AP Video
Gaza Residents Mourn Dead Amid Airstrikes Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp Cumberbatch Brings 'Penguins' to Comic-Con Raw: Air Algerie Crash Site in Mali Power to Be Restored After Wash. Wildfire Crashed Air Algerie Plane Found in Mali Israel Mulls Ceasefire Amid Gaza Offensive In Case of Fire, Oxygen Masks for Pets Mobile App Gives Tour of Battle of Atlanta Sites Anti-violence Advocate Killed, but Not Silenced. Dempsey: Putin May Light Fire and Lose Control Arizona Prison Chief: Execution Wasn't Botched Calif. Police Investigate Peacock Shooting Death Raw: Protesters, Soldiers Clash in West Bank Police: Doctor Who Shot Gunman 'Saved Lives' 'Modern Family' Star on Gay Athletes Coming Out MN Twins Debut Beer Vending Machine DA: Pa. Doctor Fired Back at Hospital Gunman
Twitter Updates
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Stocks
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Business Marquee