Obama unveils $3 trillion in debt cuts
September 19th, 2011
11:35 AM ET
3 years ago

Obama unveils $3 trillion in debt cuts

New York (CNNMoney) – President Obama unveiled a plan on Monday to cut the national debt by roughly $3 trillion over the next decade.

Obama's plan reflects his vision for how best to put the country on a more fiscally sustainable course, so it is different in nature than the kind of legislative compromise he was trying to broker this summer during the debt-ceiling debate, a senior administration official said.

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Filed under: Debt • Deficit • President Obama
soundoff (25 Responses)
  1. bassman

    This is all about politics. Pres. Obama knows that this will never pass. If he was serious, he would have offered this plan when Democrats owned all of Washington. The only reason he is doing this now is because he needs to use this dring next years election. The last thing he wants is his reelection to be about his own failures. Ameicans are too smart to buy what he is selling.

    September 19, 2011 07:57 am at 7:57 am |
  2. Canuck

    Watch the GOP claim that black is actually white and that the American people don't want to increase taxes on the rich.

    September 19, 2011 08:16 am at 8:16 am |
  3. Stuart Kawadler

    If you look closely at his proposal the savings are not real cuts that will need to be done to offset ever increasing entitlement programs. How sad that he provides no new ideas other than tax increases and just savings in medicare based on efficiency and no over payments. This is just campaign proposal and is a sad story for a supposed leader.
    If the republicans are truly serious come out with comprehensive program with complete tax code changes.
    Then offer tax credits for moving manufactureing back to USA from overseas. Lets see if anyone has stones.
    China can complain all they want, we owe them 1 trillion and if they want their money dont fight this.

    September 19, 2011 08:21 am at 8:21 am |
  4. Wire Palladin, S. F.

    But republicans are against it because they wanted $3,000,000,000,001 in cuts, and will vote it down. The GOP is great at creating debt and near depressions, but are opposed to fixing their mess. Now is the time for all good men (and women) to come to the aid of their country and vote out republicans.

    September 19, 2011 08:27 am at 8:27 am |
  5. Wire Palladin, S. F.

    I hope it includes a tax hike for millionaires like terry,va, as it is time for the rich to pay for all the unfunded perks they have received over the last 10 years.

    September 19, 2011 08:30 am at 8:30 am |
  6. A Kickin` Donkey

    America has more total debt in 2011 than 30 years ago in 1981. Combined, Households, Corporations, 7 Government owe 375% of our "nation` income", GDP compared to 175% when Reagan was President.

    Between Reagan and Obama, we only had 1 Democratic President [Clinton] and he ran RECORD BUDGET SURPLUSES which paid debt down. All the rest, ran debt UP to the record levels that Obama inherieted; all the rest were Republicans. All these Republicans toed the party line – "voodoo economics", "tax cuts for job creators". The numbers clearly show how this has hurt America.

    Because out debt is so high, we won`t spend. Because we won`t spend, there is no JOB CREATING DEMAND. Because there is no demand; no opportunity for more profit thru more revenue, companies have ZERO NEED to hire. Corporations love tax cuts and reduced regulations because they drive PROFIT up – they do nothing for JOBS. Revenue creates jobs.

    The President is correct to support increased tax rates on those that are doing better than most citizens. We need to reverse the trend started by Reagan and re-enforced by every GOP`er since then.

    This is like Survivor. If the more affluent don`t like it, throw them off the island. There are more coal miners in West Virginia & Pennsylvania than Rolex-wearing, Lexus-driving millionaires. Vote your own self interests folks. Support the President.

    September 19, 2011 08:44 am at 8:44 am |
  7. pc

    i am so proud of our president right now. for the first time he is acting like the president the majority in this country elected in 2008. the gop has has shown their true colors an will be destroyed in 2012. way to go mr president........YOU HAVE MY SUPPORT!!!!

    September 19, 2011 08:50 am at 8:50 am |
  8. Wire Palladin, S. F.

    I wonder how the 8 GOP clowns from the teabagging circus will respond. There is not an intelligent candidate yet, running for the republican nomination. Mittens will be against it before he will say it was his idea first, Cain will want to follow a Chilean third world country model, Perry will be told it does not help his corporate donors, Bachmann will promise to repeal any hope for 50 million uninsured Americans, Paul will eliminate social security and every government safety agency, Santorum will promise a federal agent in every woman's bedroom, Newt will profess colonialism, and no one cares what Hunstman says.

    September 19, 2011 08:56 am at 8:56 am |
  9. Namora Mpungwa

    Fingers crossed.

    September 19, 2011 09:04 am at 9:04 am |
  10. Rudy NYC

    The plan is supposed to include a plan to raise taxes on millionaires and billionaires. Some people in the media have been promoting the misinformation that Democrats had a chance to raise taxes on the wealthy during the first two years of the Obama administration, but dropped the ball by not trying to do so.

    Wrong. Democrats did try to do exactly just that. Recall that Democrats had two votes last year on the BTCs, Bush Tax Cuts. The first vote was to extend the BTCs minus the tax cuts for those over $250k, which meant keep the all cuts for all incomes minus the cuts for the wealthy. The second vote was a modified version of the first, which was proposed by Sen. Schumer, D-NY. It was an indentical bill except the dollar figure was raised from $250K to $1M. Both bills passed the Democratically controlled House, only to reach the Senate and die due to Republican filibusters. People like Joe Scarborough need to stop spreading lies about Democrats dropping the ball on this issue.

    September 19, 2011 09:15 am at 9:15 am |
  11. 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 11:51 am at 11:51 am |
  12. Dominican mama 4 Obama

    I support our President in his efforts.
    Let's see how the GOPT tries to justify and sell to us Americans their unfounded, and stubborn insistence on NOT raising taxes on the wealthy.

    September 19, 2011 11:56 am at 11:56 am |
  13. Sniffit

    "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."

    Not in 1970-1971 when it went from 32% to 39%. Revenue raised still went from $780,000,000 to $1,665,000,000. The reality is, it's not really a valid metric that you chose. If you look at the charts online, the year that a cpital gains increase was enacted was generally one in which there were looming economic problems from other sources. Moreover, you can find instances in which the rate went down AND the revenue collected went down with it...like 1981-1982, when the rate went down from 24% to 20% and revenues went down from $3,200,000,000 to $1,334,000,000. Your choice of statistic and the causation you are trying to impute are BOTH incorrect. There are far too many other factors and the best you can do is point out the correlation and then start talking about the greater economic situation at the time in order to understand where it really comes from.

    September 19, 2011 12:15 pm at 12:15 pm |
  14. Sniffit

    Indeed... I could also add 1971-1972, when the capital gains rate went from 39% to 45% and revenue from it still went from $1,665,000,000 to $2,724,000,000. In any case, claim of "fact" succinctly debunked.

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

    Fair wrote:
    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.
    -------------
    It means people lie about their income. assuming that it is true which it isn't. Tax revenue doesn't go to the fed. Spin again.

    History has proven time and time again that drastic tax cuts to the wealthy causes a feeding frenzy on Wall Street followed by a recession. It has happened 5 times since 1980. The deeper the cuts, the longer and deeper the recession. Every time, without fail.

    As Spkr Boehner put it so eloquently this past Friday morning, "Conservatives feel that government should control the economy. We feel that the private sector should control the economy." The problem with that picture is that conservatives allow the private sector to dictate how the laws should be written to tilt the balance sheet in favor of the elite. He made no mention of the middle class, which is the bone, muscle, and blood of the economy. Can you see greedy-ology?

    September 19, 2011 12:19 pm at 12:19 pm |
  16. Sniffit

    "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? "

    That was taken care of long ago after the GOP introduced a progressive tax structure to the US for the first time in the 1860s. The problem isn't that it's progressive or gradiated. The problem is that it is intended to be progressive, but has been written so full of loopholes and preferential deductions that only the extremely wealthy can enjoy, that it has actually become REGRESSIVE in function and in terms of the EFFECTIVE TAX RATE paid by those in the very top brackets and of the highest incomes and net worths. Whether you like the idea of a progressive tax structure or not, one thing I think everyone CAN agree on is that it was never intended, nor does it comport with our values as a society, for our tax structure to be REGRESSIVE.

    September 19, 2011 12:24 pm at 12:24 pm |
  17. patNY

    Republicans using the debt as a smoke screen for their real agenda...to strip away all environmental protections so their big oil donors can rape the environment to its death, and eliminate all financial regs to allow their big corp. donors to rape the middle class of what's left of our wealth.

    September 19, 2011 12:25 pm at 12:25 pm |
  18. As GM goes, so goes the country...Unions/Democrats killed GM, now they are killing the country

    What is "fair" about 50% of the people in this country paying NO income taxes? It is impossible to maintain the government and this country by taxing fewer and fewer, more and more. Tax all the rich 100% and the deficit STILL exists. The real problem is the federal government has simply been growing and growing and growing, for hundreds of years now. Every year creating new government programs and entitlements that NEVER DISAPPEAR, only grow and grow and grow. And since Democrats think they are entitled to unlimited amounts of OUR MONEY, they just continue the spending and the growing and the spending.

    Large government, with its hundreds of years of rules, regs and taxes is now to the point of killing its hosts, the working men and women of this country, as well as the corporations. There will come a time, if this is not stopped, that people and companies will have to decide whether to stay and die or leave and survive.

    September 19, 2011 12:44 pm at 12:44 pm |
  19. Four and The Door

    The Republicans are smart enough, care enough about getting the American economy recovered and determined enough to do what we sent them to Washington for so that they will not let Obama start raising taxes. He should understand by now that this is not the way out of this mess. The federal government needs to cut spending. His own economic advisors have warned against raising taxes when trying to reduce unemployment. But his allegiance is to his political advisors, not his economic advisors. Unfortunate for us and unfortunate for him.

    September 19, 2011 01:07 pm at 1:07 pm |
  20. Anonymous

    I'd rather pay the taxes I paid before Bush's tax cuts and have my 401k stable than go on with this farce. This idea of no new taxes is nuts – even Ronald Reagan would think it is nuts.

    September 19, 2011 01:17 pm at 1:17 pm |
  21. Ed Texas

    Obama is trying anything to get the economy working, but the GOP/Tea Baggers have done nothing but obstruct our government from working effectively. The GOP/Tea Baggers are quick to blame but unresponsive to getting people back to work. It was Republican policy that got the country so far in debt in the first place. Dubya Bush and the republicans imposed all of the tax cuts on the rich and pushed for the war in Iraq which has cost over a trillion dollars. It was Bush and the republicans who deregulated the banks to the point where we had the lending melt down that led to the worst recession since the Great Depression and caused mass unemployment. Now, the GOP/Tea Baggers don't want to do anything to clean up the mess they created. It's a sad day in American with a party that knows nothing of the word "compromise."

    September 19, 2011 01:18 pm at 1:18 pm |
  22. Rudy NYC

    somebody wrote:
    What is "fair" about 50% of the people in this country paying NO income taxes?
    -------------
    Do you even know who the people are that pay no taxes? They are the poor, the infirmed, the elderly, the *veterans* who conservative now seem to dump on, and, of course, some of your uber-wealthy friends slipping through the loop holes and tax shelters that have been so carefully crafted by Republicans.

    People who live in glass houses, shouldn't throw stones.

    September 19, 2011 01:20 pm at 1:20 pm |
  23. Alex

    Is there some fairness to this tax reasoning? Shouldn't we all pay a fair share in proportion to our income? Come and discuss this hot issue on a political platform and discussion poll built for interaction on political issues: http://bit.ly/nJzIOL

    September 19, 2011 01:32 pm at 1:32 pm |
  24. The Greedy Old PIgs have declared class war on US!

    Here's what's lost in the GOBP and phony-liberal media propaganda: The ultrarich own 60% to 80% of this nation's wealth and should, therefore, pay for that percentage of the government's budget. However, they do not. Instead, we have a huge cult, masquerading as a political party, dedicated to helping the greedy and not the needy.

    September 19, 2011 02:10 pm at 2:10 pm |
  25. Hammerer

    I read a lot about the rich should pay their fair share. For what? So the 40% that pay no taxes can get a free ride? What is the FAIR SHARE for the millions standing with their hand out demanding more? They expect those that work to provide them cash to pay their food, housing, healthcare and drugs and booze bills.

    September 19, 2011 02:20 pm at 2:20 pm |