Obama pivots, eyes Medicare changes, tax increases

[onehandle]

Source: AP

WASHINGTON – President Barack Obama, two years into a presidency that increased spending to prime a weak economy, is turning his attention to the nation's crushing debt and trying to counter a Republican anti-deficit plan with a framework of his own that tackles politically sensitive health care programs while also increasing taxes.

The president on Wednesday was to deliver a speech outlining his proposal to reduce spending in Medicare and Medicaid, raise taxes on the wealthy and cut defense costs. In a pre-emptive response Tuesday, House Speaker John Boehner, R-Ohio, called any proposed tax increase "a nonstarter."

The White House wouldn't offer details of the president's approach ahead of the speech. But an official commenting on the condition of anonymity said the plan borrows from the December recommendations of Obama's bipartisan fiscal commission, which proposed $4 trillion in deficit reduction over 10 years.

In a preview of the speech, the White House said it aims to achieve "balanced" deficit reduction by keeping domestic spending low, reducing the defense budget, cutting excess health care spending in the nation's biggest benefit programs, and eliminating loopholes and breaks in the tax system.

Read more: http://news.yahoo.com/s/ap/us_obama_budget

---

Which is more likely while we are under teabagger control? Medicare cuts or tax increases?

[ananda]

1. My dream headline.

Obama pivots, eyes ending wars and cuts to defense spending!

[DrDan]

2. what? no tax increase on the wealthy?

[MacNfries]

3. This will be Obama's Crowning Moment ...

I believe Obama will seal his future presidency hopes with what happens here. He needs to communicate and obtain a shared, balanced approach to fixing the economy. If he doesn't get new tax money from the rich & corporations, he's pretty much finished. I know I won't vote for him again unless it is to avoid a TP president. I hope he will also request that Congress join the pain by relinquishing some of their perks ... like COLAs, and FREE everything.

[indepat]

23. BHO hopefully will use this opportunity to articulate how patently irresponsible Republican fiscal

policies and unfair tax policies have largely created a 13-fold increase in the national debt since the time the gipper unleashed his "voodoo economics" upon us. Surely he will if he realizes the genesis of our staggering national debt, wants to excoriate Republicans by rightfully hanging this albatross around their necks, and not want to wholly disappoint/piss off nearly everyone who might now depend or ever need to depend on social security and Medicare as it presently is. :patriot:

[Corruption Winz]

4. This is the problem...

This here, is a great idea to a certain extent. Yet, before it even gets properly going, the House plans on shutting it down.

[daa]

7. Reagan went to the people, why not Obama? nt

[JustABozoOnThisBus]

10. Obama doesn't want to hear from the people

He's listening to corporate executives.

[Hoyt]

13. I think that is what he is doing today.

[Liberalynn]

24. It depends on what he says

will he just be "telling" how much he is willing to "compromise" or will he be "listening" and telling the people what he "won't compromise" on and why?

If its the later he has my apologies for doubting him and support, if its the former, I would hope he faces a primary challenger.

[florida08]

5. sure would love to have my socks knocked off

If there is a chess game underway now would be the time to deliver a check. He has the bonfides of conceding to republican interests
enough to void any suggestion of partisanship. Will the pendulum swing back?

[mysterysoup]

15. No way.

He will sell us out, just as he always does. Now he will try to pay for his corporate bailouts on the backs of old people. Is there no level to which he will not stoop?

[russspeakeasy]

20. I'm with you florida 08. I hope he knocks me flat on my old ass.

[JJW]

6. Does it matter what he says

His lofty rhetoric is quickly replaced by the right-wing agenda and then he claims their agenda is bipartisanship.

[Mojorabbit]

8. Lots of ways to cut medicare costs

for example let the program compete for lower drug costs but I would bet my house that that won't be on the table.

[JustABozoOnThisBus]

11. Negotiate for better drug prices?

That one SHOULD sell, even to Republicans. It's very capitalistic.

But, you're probably right, the house would stop it, to keep the Pharma donations coming in.

[mysterysoup]

17. Bigger co-pays, higher deductibles and bigger medigaps.

That's how he'll do it. He could even raise the eligibility age. Have I left something out?

[Windy]

9. Not a ONE of you detractors has read the budget that is there to be seen online

It is easily searchable and in pdf format.

there are no cuts for recipients of medicare/medicaid. Only addressing fraud by providers and programs such as medicare advantage.

You may want to get the facts before condemning the president.

[BumRushDaShow]

14. People on DU don't read anymore.

They see a headline and start knee jerk bashing.

[mysterysoup]

19. Whatever it says, I don't believe it.

Your pdf budget is just a proposal. It hasn't been through the Republican wringer yet. When it emerges, there will be cuts for medicare and medicaid recipients. And President Obama will agree to them in the spirit of bi-partisanship.

[iwishiwas]

12. "Pivots" -is this new term for 'flip-flop"??

[mysterysoup]

18. It's much more elegant. n/t

[russspeakeasy]

21. Beautiful.

[bowens43]

22. One thing is certain

if Obama says it today he'll reverse it tomorrow.......

[Scurrilous]

25. Glory Days!!1!

:rofl:

[florida08]

16. well this isn't good

http://imarketnews.com/node/29322

Boehner said that he has been "pushing the president for months to engage" on long-term fiscal issues. He said Obama's decision to do so is a belated but welcome development.

"I'm glad he finally decided to engage," Boehner said.

At a briefing Tuesday, Cantor said that he expects Obama to "embrace" the Simpson-Bowles deficit reduction plan in his Wednesday afternoon speech at George Washington University.

The president is expected to call for further controls on domestic discretionary, defense, and entitlement programs and also make the case for tax reform with some additional taxes.

[Hissyspit]

26. Obama Would Cut Deficit by $4 Trillion in 12 Years

Source: Associated Press

Obama would cut deficit by $4 trillion in 12 years

– 16 mins ago
WASHINGTON – The White House says President Barack Obama is setting a goal of lowering the deficit by $4 trillion over the next 12 years as he wades into the politically volatile debate over the nation's crushing debt.

A week after formally announcing his re-election campaign, Obama is set to propose a mix of tax increases already rejected by Republicans, and cuts to safety-net health programs likely to alienate many liberals.

In a speech Wednesday at George Washington University, the president also is expected to propose reducing defense spending and eliminating tax breaks and loopholes.

Obama's plan falls well short of the more than $5 trillion in cuts over a decade proposed by House Republicans, and dismissed by Democrats as draconian.

Read more: http://news.yahoo.com/s/ap/20110413/ap_on_re_us/us_obama_budget_deficit

---

"Now, we believe the reforms we’ve proposed to strengthen Medicare and Medicaid will enable us to keep these commitments to our citizens while saving us $500 billion by 2023, and an additional one trillion dollars in the decade after that. And if we’re wrong, and Medicare costs rise faster than we expect, this approach will give the independent commission the authority to make additional savings by further improving Medicare.

But let me be absolutely clear: I will preserve these health care programs as a promise we make to each other in this society. I will not allow Medicare to become a voucher program that leaves seniors at the mercy of the insurance industry, with a shrinking benefit to pay for rising costs. I will not tell families with children who have disabilities that they have to fend for themselves. We will reform these programs, but we will not abandon the fundamental commitment this country has kept for generations.

That includes, by the way, our commitment to Social Security. While Social Security is not the cause of our deficit, it faces real long-term challenges in a country that is growing older. As I said in the State of the Union, both parties should work together now to strengthen Social Security for future generations. But we must do it without putting at risk current retirees, the most vulnerable, or people with disabilities; without slashing benefits for future generations; and without subjecting Americans’ guaranteed retirement income to the whims of the stock market.

The fourth step in our approach is to reduce spending in the tax code. In December, I agreed to extend the tax cuts for the wealthiest Americans because it was the only way I could prevent a tax hike on middle-class Americans. But we cannot afford $1 trillion worth of tax cuts for every millionaire and billionaire in our society. And I refuse to renew them again.

Beyond that, the tax code is also loaded up with spending on things like itemized deductions. And while I agree with the goals of many of these deductions, like homeownership or charitable giving, we cannot ignore the fact that they provide millionaires an average tax break of $75,000 while doing nothing for the typical middle-class family that doesn’t itemize.

My budget calls for limiting itemized deductions for the wealthiest 2% of Americans – a reform that would reduce the deficit by $320 billion over ten years. But to reduce the deficit, I believe we should go further. That’s why I’m calling on Congress to reform our individual tax code so that it is fair and simple – so that the amount of taxes you pay isn’t determined by what kind of accountant you can afford. I believe reform should protect the middle class, promote economic growth, and build on the Fiscal Commission’s model of reducing tax expenditures so that there is enough savings to both lower rates and lower the deficit. And as I called for in the State of the Union, we should reform our corporate tax code as well, to make our businesses and our economy more competitive.

This is my approach to reduce the deficit by $4 trillion over the next twelve years."

[notesdev]

27. Read closer

all the substantial cuts are scheduled for after his theoretical second term is up. He's making a promise that someone else will have to break (hey, that's a "change"!)

Translated from politese to English, he's saying he does not plan to make any cuts at all, but instead to kick the can down the road so the next sucker President can clean up the mess.

It's funny, I thought we elected *this* President to clean up the mess.

[aquart]

28. So he plans on continuing the Bush tax cuts?

And his wars?

[MissDeeds]

33. Apparently

:grr:

[Dark]

29. The deficit? So we'll have a 3.4 trillion surplus?

Or does he mean the debt?

[notesdev]

30. it's over 12 years

He's basically proposing a cumulative average $300B yearly spending cut. Where all the difficult choices get to be made after his second term is over.

[GreenTea]

31. NEVER in a million years until the rich are taxed appropriately & their loop-holes taken away.

This includes the greedy rich corporations as well!

[timo]

32. dont say it too loud

everyone else is in the other room cheering on the bullshit!!

[jeremyfive]

34. Hell of a Job, Dubya

Could you have gotten us any further into debt, Dubya? This is too easy.

[Rage for Order]

35. So he will increase the national debt by $8 trillion in 12 years?

That's some bold leadership there.

[OwnedByFerrets]

36. How about stopping the TWO BILLION a day that goes into

maintaining WAR in other countries.

[Johnny Harpo]

37. I Know How He Can Cut The Deficit Now.....

get us out of the damn 'conflicts' in the middle east....stop spending THAT money!

And as for 12 years?...We may have another 4 with Obama, but as a Dem, I don't expect to get two Dem presidents in a row.

Once the Re-Thugs get back in, it will be a whole new ball game.

You think its bad now?....you ain't seen nothin' yet!

[Johnny Harpo]

38. Of Course Obama Pivots...

he flip-flops more then a fish on a dock.

He'll take anything, rather then dig in his heels and fight for what he promised.

That said...no way I want a Re-Thug in the White House.

If you think its bad now...just wait until the Repukes get their turn again.

[ProudDad]

39. Biggest piece of BULLSHIT = "crushing debt"

Nonsense!

The "debt" financed this fucking Ponzi-scheme of a capitalist economy. If it weren't for public and private debt the ridiculous house of cards that is modern capitalism would have collapsed back in the early 80s...

And we would have responded by replacing it with a higher quality of living based on steady state, right-sized local economies -- just as folks did in many places during the last Great Depression...

--------------------

On another note, I'll be ya' $1000 they won't cut the war budget AT ALL! As most, they'll pretend to "cut" it by lowering their projections of its geometric growth by a fraction of a point and declare it a "massive cut"... :rofl:

Obama ain't "cut" the war budget yet -- he's increased it...

And ain't ya' glad he's embraced the findings of the "Cat Food Commission"...boy, that's change to believe in... :sarcasm: