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September 19, 2011 at 05:33 AM
President Barack Obama on Monday announced a plan to reduce the deficit by more than $3 trillion over the next 10 years, with $1.5 billion coming from new taxes on the wealthy.
According to a New York Times report, administration officials said that the plan relied on entitlement program cuts, war savings, and increased taxes on the wealthy—termed the Buffett Rule after billionaire Warren Buffett’s complaint that he is taxed at a lower rate than his employees. The tax hike includes a new minimum rate for those who earn more than $1 million per year, and also closes some loopholes and limits the amount that those with high earnings can deduct.
Obama also specifically promised to veto any plan that relies solely on spending cuts to reduce the deficit and fails to include revenue increases through higher taxes on the wealthy. John Boehner, R-Ohio, House speaker, reiterated just last week that his party would not support any tax increases to raise revenue and, according to Bloomberg, instead urged cuts to such programs as Medicare.
