President Barack Obama outlined his vision for cutting $4.4 trillion from the national deficit over the next 10 years in a Rose Garden speech today, laying the groundwork for this fall’s debate on spending and tax reform.
Obama called on Congress yet again to pass his $447 billion jobs plan and said he believes that by recommending ways to pay for the legislation, as well as ways to reduce the deficit long term, he is providing lawmakers with a bill they can pass “right away.” However, Members of Congress in both parties have suggested approving the plan en masse would be nearly impossible.
“I’m ready to sign a bill. I’ve got the pens all ready. Congress should pass this bill knowing that every proposal is fully paid for. The American Jobs Act will not add to the nation’s debt,” Obama said. “This is important because the health of our economy depends on what we do right now. ... Washington has to live within its means — we have to cut what we can’t afford to pay for what really matters.”
The president’s framework includes $1.2 trillion in savings already identified in August’s debt ceiling deal, $580 billion in mandatory savings cuts, $1.1 trillion in savings from the troop drawdown in Afghanistan and Iraq and $1.5 trillion in tax reform proposals.
Of the $580 billion in proposed cuts to entitlement programs, $248 billion would come from Medicare and $72 billion will come from Medicaid or non-Medicare health-related savings, with no changes in retirement age planned and no beneficiary changes until 2017.
In a carrot to Congressional Democrats who likely will feel uneasy about entitlement reform, Obama emphasized his desire to protect health benefits for seniors and Social Security. He also took a dig at Speaker John Boehner (R-Ohio), lamenting that the two men were unable to reach a “grand bargain” as Obama “had hoped” during the summer’s negotiations to raise the debt ceiling, and quoted Boehner from an economic address the Republican delivered last week saying his proposals do not ask enough of America’s wealthiest to contribute more in revenues.
“That’s not smart, not right,” Obama said.
The president said he would veto any bill that presented “a one-sided deal that hurts the folks that are the most vulnerable” by implementing serious cuts to Medicare or Medicaid without also including revenue reform that levies higher taxes from the wealthiest Americans.
“This is not class warfare; it’s math,” Obama noted, in the face of criticism his White House is trying to stoke class divisions to move his plan forward.