OBAMA to propose $3T in CUTS, pledge to VETO TAX CUTS FOR THE WEALTHY – TheHill
By Sam Youngman – 09/18/11 10:00 PM ET
President Obama on Monday will unveil his vision for deficit reduction and tax reform in the Rose Garden, threatening to veto any bills that don’t raise taxes on the wealthy and corporations.
Administration officials said the proposal will pay for Obama’s $447 billion jobs plan while cutting $3 trillion in deficit spending over 10 years.
The $3 trillion in deficit reduction is made up of money saved from ending the war in Iraq and drawing down in Afghanistan, raising taxes for the wealthy and corporations and cutting about $540 billion in Medicare and Medicaid, administration officials said Sunday night.
The proposals represent the president’s vision for the path he thinks the supercommittee should take; not the elements of compromise Obama sought with House Speaker John Boehner in a “grand bargain” in July.
Of the mandatory program cuts, Obama will propose $248 billion in cuts and reforms to Medicare — 90 percent of which would come from reducing overpayments — and $72 billion in Medicaid and other healthcare programs, all over 10 years.
A senior administration official said that “there will be both provider and beneficiary policy changes,” but declined to say what cuts those would include.
There is no proposed raise for the Medicare age, administration officials said, because the plan is the president’s vision and not an effort to win votes in the House and Senate as was the case in July.
But Obama will explicitly threaten to veto any bill that Republicans send to him that cuts Medicare but does not raise taxes on the wealthy, administration officials stressed.
Boehner said in a speech last week that revenues should be off the table for the committee.