President Obama has showcased his budget plan to help reduce America’s massive budget deficit by as much as four trillion US dollars by 2023.
It will mean some tough discussions in the weeks to come between Republicans and Democrats, as both have their own ideas on how to reduce the deficit:
“We have to live within our means, reduce our deficit, and get back on a path that will allow us to pay down our debt,” said President Obama.
“That is why I am calling on Congress to reform our individual tax code so that it is fair and simple, so that the amount of taxes you pay is not determined by what kind of accountant you can afford. They want to give people like me a 200,000 dollar tax cut that is paid for by asking 33 seniors to each pay 6,000 dollars more in health costs. That is not right and it is not going to happen as long as I am president.”
The ever ballooning deficit will be a key election issue in 2012. The Republicans have already presented their plans based on healthcare cuts and a slashing of social programmes for the vulnerable as well as education cuts.
Wall Street reacted positively while Republicans, who control the House of Representatives, say tax hikes for the rich are out of the question.