Obama outlines debt plan; GOP slams tax component
September 19th, 2011
11:40 AM ET
3 years ago

Obama outlines debt plan; GOP slams tax component

Washington (CNN) – President Barack Obama released his long-awaited debt reduction plan Monday, outlining a roughly $3 trillion savings blueprint that was immediately criticized by top congressional and other Republicans.

The president's plan includes $1.5 trillion in new revenue generated largely by higher taxes on the wealthiest Americans, a proposal vehemently opposed by GOP leaders, who insist that any tax increase will undermine an already shaky economy.

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Filed under: Debt • Deficit • President Obama • Republicans
soundoff (60 Responses)
  1. Four and The Door

    As if investment in business is not already low enough. Obama intends to make it even less attractive. In some odd way this is going to help the economy?!?!

    Of course we should have all figured out by now that Obama is no economic genius, but this is precious. And if the American economy were guided completely by Obamanomics, certainly we would see 15% unemployment before we saw 5%.

    Thank goodness American voters showed up in 2010 to try and keep the economic genius from completely ruining our economy before we can replace him in 2012. Speaker Boehner and the Republicans in the House will not allow Obama's political games to destroy our economy even more.

    September 19, 2011 10:42 am at 10:42 am |
  2. Rudy NYC

    May I? May I slam the conservative greedy-ology that sucks money out of the economy and sends it to Wall Street investment banks, who turn around and pay themselves outrageous salaries. Several trillion extra dollars went somewhere over the past decade. Does anyone care to guess where it went?

    September 19, 2011 10:52 am at 10:52 am |
  3. Rick McDaniel

    New taxes to create more spending programs, is just more waste.

    No new taxes should be permitted, while increasing spending programs.

    We still have a 16 trillion debt, and not one penny of that has ever actually been paid off, since 1954. Time to pay our bills.

    September 19, 2011 10:59 am at 10:59 am |
  4. Sniffit

    Cry us a river, GOPers. In fact, cry TX a river...all that praying doesn't seem to be fixing their drought.

    "As if investment in business is not already low enough."

    Really? Do you pay no attention whatsoever to the DOW or S&P etc.? The only "investment in business" that's not taking place is the banks, who are hoarding. Individuals and most other corporations are playing with their money on the stock market like its going out of style...all while sitting on massive piles of capital that they refuse to put into expansion and hiring because their hoarding of the nation's wealth has finally started to reach critical mass, causing a massive demand vacuum that they are unwilling to fix because it would require letting the middle-class and poor accumulate a fairer share of the nation;s income, wealth and assets...yes, that measn paying higher taxes and/or paying higher wages...both of which the Masters of the Universe find to be completely unacceptable results when they've paid so much to fill Congress with puppets.

    September 19, 2011 11:03 am at 11:03 am |
  5. Sniffit

    "We still have a 16 trillion debt, and not one penny of that has ever actually been paid off, since 1954. Time to pay our bills."

    The last two presidents to decrease the ratio of debt as a percentage of GDP were Clinton and Carter. Nixon/Ford, Saint Ronny, Bush 1 and Dubya all increased it.

    September 19, 2011 11:08 am at 11:08 am |
  6. mikle

    I don't trust Obama in 1%. His bla-bla-bla never deliver anything. His change never achieve. I vote for him, but i recover my mistake in 2012. No more without experience clown.

    September 19, 2011 11:13 am at 11:13 am |
  7. rs

    You gotta love the GOP/TP- one tool only to fix the economy- Tax cuts for the insanely rich. Anyone want to tell them it doesn't work? Republicans- the party that will bring a pop gun to a firefight. Get with it boys 75% of Americans want the Bush tax cuts to go away. This is your ONE opportunity to appear reasonable and rational (so, we expect you'll double-down and say "No!" one more time).

    September 19, 2011 11:19 am at 11:19 am |
  8. Mary

    Rudy NYC

    May I? May I slam the conservative greedy-ology that sucks money out of the economy and sends it to Wall Street investment banks, who turn around and pay themselves outrageous salaries. Several trillion extra dollars went somewhere over the past decade. Does anyone care to guess where it went?
    *********************************************************************************************************
    Well, since you brought up the subject of "greedy-ology", how about that $10 MILLION that Michelle Obama spent just on her vacations in one year. Seems pretty "greedy-ology" to me when the ones that have to foot that bill (us hard working tax payers) can't even afford to take our own family on a vacation. Yep, there's plenty of "greedy-ology' out there, right Rudy NYC?

    September 19, 2011 11:19 am at 11:19 am |
  9. AZ DEM

    anyone can afford a higher rate its millionaires and billionaires. As far as all other tax payers go we need to go back to the Clinton levels and let the Bush tax cuts expire as politically damning as it could have been Obama should have let them expire the end of last year. Had he traded that for the deal that they made or even got the debt ceiling raised THEN he would be sitting a lot better in the polls and public opinion but he is FINALLY leading in Washington and if the Republicans and even Dems in Congress choose not to follow then we will have it out in 2012.

    September 19, 2011 11:25 am at 11:25 am |
  10. Four and The Door

    Sniffit
    "As if investment in business is not already low enough."
    Really? Do you pay no attention whatsoever to the DOW or S&P etc.?
    _________________________________________________________________________________________________
    Oh, but those are large publicly traded companies who are well funded. Investment in small businesses, the ones who can make a quick, huge impact on unemployment is tough enough right now. And demand is certainly not the problem right now. It is coming up with cash to invest in all of the opportunities available to businesses. Really you say? in 2011? Yes. Lots of places small businesses see unmet customer demand. But it takes investment money to take advantage of demand. Getting money to invest has never been more difficult for small businesses. But it will get more difficult if Obama has his way. His objective must be 12% unemployment for 2012. If not, he is using the wrong strategy.

    September 19, 2011 11:26 am at 11:26 am |
  11. Marry

    Dear Mr. President, very well said and a very good plan.
    But, I guess, you have found out already that:
    The Republicans are very good at selling bad things. (Without any scruple and lots of money to be made of it, it is quite easy to lie to the “stupid poor”)
    The Democrats are very bad at selling good things. (A bit more backbone would be nice!)
    Now, it is high time and very important to SELL YOUR GOOD PLANS in an EASY TO UNDERSTAND way! Better use short sentences – even better use more short catchphrases since some of the people to be convinced have a very short attention span! Package it so that the less THOUGHTFUL/ EDUCATED /SMART people can “relate”. These plans are to their benefit and good for the country! So, good luck!

    September 19, 2011 11:47 am at 11:47 am |
  12. MTATL67

    I would like to know where the Republicans get the nerve. Especially after they ear-marked the heck out of the FAA budget.
    Here are the ones that got me. 1) Tennessee, $269,000 was spent on a sanctuary for white squirrel 2) Kentucky, $200,000 Chevrolet Corvette simulator. Not to leave out Democrats. West Virginia, $160,000 for renovations on a Roman bath. There are 435 members in the House and 100 in the Senate. If everyone of them ear-marks one bill for let’s say $269,000 that comes to a total of $143,915,000,000. I know that not all 535 would ear-mark on bill. Simple math 535 will always spend more than 1 in the White House.

    September 19, 2011 11:49 am at 11:49 am |
  13. Sniffit

    "And demand is certainly not the problem right now. "

    Hahahahahahahahahaha. Period.

    September 19, 2011 11:50 am at 11:50 am |
  14. Ross DiRienzo

    Until middle class goes back to work (even public jobs) there won't be any recovery! Companies won't hire until they see an increase in demand and it won't happen if people, NORMAL people are out of job.
    The only way to jump start the economy is putting people back to work and if corporations don't do it the only other source is government! Hire the teachers, the police, the public servants BACK!
    Look at Texas! It is a mess: jobs with ridiculously low salaries from corporations protected by an anti-middle class state government! Poverty rampant!

    September 19, 2011 11:53 am at 11:53 am |
  15. FM

    Keep the heat on Mr. President. Its time to fight for the poor. The seriousness of producing something is now. No more monkey business while the economy is heading further south. Time to pay taxes accordingly!

    September 19, 2011 11:57 am at 11:57 am |
  16. michaelam

    @Mary:
    Care to provide a credible link or some corrabitive evidence supporting your ludicrous claim that Michelle Obama spent 10 million dollars on vacations this year? Hint: do not list the Drudge Report, Fox Noise, El Rushbo, or anyother Right Wing hate and lies source as credible and valid sites!

    September 19, 2011 12:07 pm at 12:07 pm |
  17. Fair is Fair

    Rudy said:

    "We need to eliminate the grotesque 15% rate on most capital gains. Why should a millionaire pay 15%, when the middle class pays 28%. The middle class also pays more taxes in the form of sales taxes(8%) and property(4%) taxes, which pushes their total taxes to well over 30%, maybe to 40% or higher in some cases. That is simply not fair. I feel it is unconstitutional because he shows a preferential treatment for one segment of society."
    -----–
    History, time and time again, has PROVEN that whenever cap gains rate is increased, cap gains revenue to the feds decrerases. Just look it up Rudy – it's a fact.

    As far as unconstitutionality due to prefenential treatment – well, isn't that by definition what the progressive income tax structure we have in place does? Your anger is better directed towards those like Sen. John Kerry, D-MA, whose source of the VAST majority of his income is in the form of TAX FREE muni bonds which make his EFFECTIVE tax rate in the single digits. Look that up too.

    September 19, 2011 12:07 pm at 12:07 pm |
  18. Jordan Cunningham

    I'm a young 20-year-old woman, I fully support obamas plan. Hopefully it isn't to late for this plan to be examined and discussed. This plan has great potential for the future. Something needs to be done now so, we have a fighting chance tomorrow. Ten years isn't that long. Things can be re-discussed when we are a stable country once again. We need to jump at this chance to provide a chance for our country to have a future. All I ask, as a young girl with a bright future, is for you to think of those who need your help. Please don't think of your wallets think of others and the future this could bring!!
    Thank you, Jordan Cunningham

    September 19, 2011 12:11 pm at 12:11 pm |
  19. Rick McDaniel

    Obama's debt reduction plan is not a plan........it is simply refusing to reduce spending, and he refuses to reduce the deficit one cent, unless he gets outrageous increases in revenue, despite the fact that he squanders our tax dollars like water.

    This President is going to destroy this country from within........financially.

    September 19, 2011 12:13 pm at 12:13 pm |
  20. Rick McDaniel

    The war savings are NOT real. That is political BS, and untrue.

    September 19, 2011 12:15 pm at 12:15 pm |
  21. The Elephant in The Room

    Over the LAST 3 DECADES, in every year except `98, `99 & `00 [during Clinton] the US government took in less than its expenses. Over that 30 years tax rates were lowered – said another way – these tax cuts added to the deficit.

    It`s Time To Pay The Money Back.

    Use higher taxes to Pay off those IOUs in the Social Security piggy bank.

    September 19, 2011 12:17 pm at 12:17 pm |
  22. Rudy NYC

    Rick McDaniel wrote:
    We still have a 16 trillion debt, and not one penny of that has ever actually been paid off, since 1954. Time to pay our bills.
    -------------
    What a lie. We raised taxes under Clinton, the economy boomed, and we ran surpluses paying down debt for 3 years in a row. Too bad Greenspan caused the economy to stall by piddling with the prime rate. The economy recovered and thrived when the rate was lowered, and lowered again, not as a result of any tax cuts.

    September 19, 2011 12:23 pm at 12:23 pm |
  23. The Clear Thinking Independent Voter

    Well said Jordan Cunningham, Keep using your head to think things through and don`t rely on the hype from either side.

    Get out and vote for the President and again for Democrats in 2014 too. Those of us who are not selfish & self centered must restore some integrity to the social contract that is the true American Dream.

    September 19, 2011 12:24 pm at 12:24 pm |
  24. Annie, Atlanta

    Of course the GOP slams these tax increases. Their owners will be effected, and we can't have that happen to the guys who now write the legislation and own most of our politicians, can we. The ruling class is no longer us, folks.

    September 19, 2011 12:25 pm at 12:25 pm |
  25. Annie, Atlanta

    Rick McDaniel, I think there's some spending cuts in there, including benefits for those on Medicare. But just cover your ears and yell out your one sided point of view, and maybe it will catch on. Isn't that how it works these days?

    September 19, 2011 12:27 pm at 12:27 pm |
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