Washington - Qna
President Obama struck a combative tone on Monday as he called for $1.5 trillion in new tax revenue as part of a proposal to tame the nation’s rocketing federal debt, drawing a sharp contrast with the Republican vision and resetting the terms of the economic debate in Washington this fall. Speaking from the White House, President Obama called for $1.5 trillion in new revenue as part of a plan to find more than $3 trillion in budget savings over a decade. Obama threatened to veto any plan to tame the debt that pairs cuts to Medicare and Medicaid with increases in taxes on the rich, reported the Washington Post. \"We can’t just cut our way out of this hole,\" Obama said. \"It’s going to take a balanced approach.\" Combined with his call this month for $450 billion in new stimulus, the proposal represents a more populist approach to confronting the nation’s economic travails than the compromises he advocated earlier this summer. It is also diametrically opposed to many of the views supported by Republicans, who want to balance the nation’s books mainly through cutting spending, particularly in Medicare and Medicaid. Republiacns argue that Obama’s plan to tax the rich is a divisive political strategy. But Obama rejected that view Monday. \"This is not class warfare,\" Obama said. \"It is math.\" Obama proposed new taxes on the wealthy, a special new tax for millionaires, and eliminating or scaling back a variety of loopholes and deductions for those making more than $250,000 a year. About half of the tax savings would come from the expiration next year of the George W. Bush administration tax cuts for the wealthy. Other cuts in domestic spending would bring the total spending savings to $580 billion. These cuts include scaling back farm subsidies, altering pensions and benefits for members of both the civil service and military service, and other changes in government operations. About $1.1 trillion in savings is also expected from winding down the wars in Iraq and Afghanistan. Obama pledged to veto any cut in entitlements that does not also include increases in tax revenue. Combined with the debt deal this summer, Obama’s plan would reduce the federal debt by $4.4 trillion over a decade