Obama's debt-reduction plan: $3 trillion in savings; changes to Medicare, Medicaid less aggressive than previously considered

Published on September 20, 2011 at 3:07 AM · No Comments

The proposal, which is scheduled for release today, will include $320 billion in health care savings, but it will not raise Medicare's eligibility age. Half of its savings result from new tax revenue. President Barack Obama is also sending a warning to congressional Republicans: If they send him a bill that cuts programs for poor and elderly Americans but doesn't impose sacrifice on corporations or ask others to sacrifice, he will veto it.

The Washington Post: Obama's Debt-Reduction Plan: $3 Trillion In Savings, Half From New Tax Revenue
But the president won't call for any changes in Social Security, officials say, and is seeking less-aggressive changes to Medicare and Medicaid than previously considered. He will propose $320 billion in health care savings but will not include raising the Medicare eligibility age from 65 to 67, officials said. Any reduction in Medicare benefits would not begin until 2017, they said. Other cuts in domestic spending would bring the total spending savings to $580 billion. About $1 trillion in savings is also expected from winding down the wars in Iraq and Afghanistan (Goldfarb, 9/18).

The New York Times: Obama Plan To Cut Deficit Will Trim Spending By $3 Trillion
President Obama will unveil a deficit-reduction plan on Monday that uses entitlement cuts, tax increases and war savings to reduce government spending by more than $3 trillion over the next 10 years, administration officials said (Cooper, 9/18).

Los Angeles Times: Obama Deficit Plan Includes Raising $1.5 Trillion From Tax Overhaul
President Obama on Monday will put forward a plan to slash more than $3 trillion from the nation's deficits by winding down the wars in Afghanistan and Iraq, raising taxes on wealthier Americans, closing tax loopholes, and cutting the cost of Medicare and other government health programs, senior White House officials said. Obama, who is to lay out his proposal in a Rose Garden speech at 10:30 a.m., will also issue a specific warning to congressional Republicans: If they pass a bill that cuts programs for poor and elderly Americans without asking profitable corporations and others to sacrifice, he will veto it (Nicholas, 9/18).

The Wall Street Journal: New Obama Deficit Plan
The president will also propose changes to Medicare and Medicaid that would reduce the deficit by about $300 billion over 10 years. He won't propose increasing the Medicare eligibility age, people familiar with the plan said, and won't include changes to Social Security. … A senior administration official also said Mr. Obama will make clear that he will veto any bill that makes changes to Medicare without tax increases on the wealthy. … The plan, which Mr. Obama will unveil Monday in remarks at the White House, will be submitted to a congressional super committee that was created to craft a deficit-reduction plan of at least $1.2 trillion over 10 years. The committee's efforts follow on the more than $900 billion in spending cuts that were part of a deal Mr. Obama made with congressional Republicans in August (Lee and Paletta, 9/19).

The Associated Press/NPR: Obama To Propose $1.5 Trillion In New Tax Revenue
Drawing a bright line with congressional Republicans, President Barack Obama is proposing $1.5 trillion in new tax revenue as part of his long-term deficit reduction plan, according to senior administration officials (Kuhnhenn, 9/18).

Politico: Barack Obama To Unveil $3 Trillion Deficit-Cutting Plan
President Barack Obama will release a plan Monday to cut the federal deficit by $3 trillion over the next decade, drawing half the savings from new tax revenue and sparing Medicare recipients from having to wait longer to collect benefits, senior administration officials said Sunday (Budoff Brown and Epstein, 9/18).

USA Today: Obama To Pitch $3 Trillion More In Deficit Cuts
The deficit-reduction plan to be submitted to a special congressional committee would cut $1.5 trillion through tax increases; $1.1 trillion through winding down the wars in Iraq and Afghanistan; $580 billion from reductions in entitlement programs such as Medicare and Medicaid; and $430 billion from reduced interest costs (Jackson, 9/18).

Bloomberg: Obama to Propose $1.5 Trillion in Taxes
President Barack Obama will call for $1.5 trillion in tax increases mostly targeting the wealthy over the next decade as part of a plan to cut the U.S federal deficit by $3 trillion, administration officials said. Obama's plan, which he is scheduled to unveil at 10:30 a.m. Washington time today at the White House, will form his recommendations to the 12-member congressional committee charged with finding ways to trim at least $1.5 trillion from the deficit. … Obama will threaten to veto any deficit plan that reduces Medicare benefits unless wealthy Americans also are asked to pay more in taxes, according to the officials, who briefed reporters on condition of anonymity. While Obama will include Medicare-benefit cuts in his proposal, the administration will insist on tax increases as a condition, they said (Dorning, 9/19).

CNN Money: Obama To Unveil $3 Trillion In Debt Cuts
[I]n remarks on Monday morning, the president will make clear he'll veto any debt-reduction legislation that takes "one dime away from Medicare benefits without asking the wealthy to pay their fair share," the official said (Sahadi,9/18).

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