White House: Obama to lay out spending plan

[cal04]

http://news.yahoo.com/s/ap/20110410/ap_on_re_us/us_spending_showdown

A top White House political and economic adviser says President Obama will lay out new plans this week to reduce the federal deficit.

Obama adviser David Plouffe, speaking Sunday on NBC's "Meet the Press," says Obama plans to offer ideas for what Plouffe calls "long-term deficit reduction" as Congress begins to debate raising the nation's debt ceiling.

Plouffe is giving few specifics on what Obama will announce, but he says that the president believes taxes should go up on higher-income Americans. He also says that the Republican budget plan offered this week by congressman Paul Ryan of Wisconsin may pass the House but won't become law.

[Orrex]

1. I hope that we get to see him hand one of those big dollar-sign sacks full of cash the Republicans

I'm tired of all this subtle "tax cut" imagery. Let's have a visual that everyone can remember!

[high density]

2. No by all means, do not get out in front of the debt ceiling debate

Let the Republicans control it like they did with healthcare reform, tax cuts and this most recent ridiculousness. Democrats are so good at playing defense.

[n2doc]

3. When Obama plans a budget, it is a "spending plan"

When Ryan does so, it is a "deficit reduction plan". Get the meme?

[cal04]

4. Plouffe on Spending

http://www.nationaljournal.com/the-sunday-shows-plouffe-on-spending-20110410

(snip)
He said Obama's speech this week will detail a "balanced" way of gradually reducing the nation's $14.2 trillion debt, including what is certain to be a controversial attempt to raise taxes on the rich. Plouffe also took a swipe at House Budget Chairman Paul Ryan, R-Wis., who released a high-profile debt reduction plan earlier this month that would restructure Medicare by passing more expenses on to the elderly while simultaneously imposing across-the-board tax cuts. Plouffe said the Ryan plan would save the average millionaire $200,000 per year in taxes, savings he suggested the wealthy neither needed nor deserved.

(snip)
Whither Social Security Reform?

9:40: After largely getting a pass in Ryan's budget blueprint, will Social Security be spared in Obama's plan? Plouffe was noncommittal when asked by Fox News Sunday's Chris Wallace. "He (Obama) does not think Social Security is a chief contributor to our deficit, especially in the short term," Plouffe said. However, "if there's a way to preserve Social Security, we should strive to do that."


Obama to deliver speech on deficit reduction this week
http://content.usatoday.com/communities/theoval/post/2011/04/obama-to-deliver-speech-on-deficit-reduction-this-week/1

(snip)
Plouffe said on ABC's This Week that Obama does not believe Social Security to be "a significant driver in our deficit in the short term." But he added, "if there's a way to strengthen Social Security that doesn't hurt retirees and beneficiaries in the short term, and doesn't slash benefits in the long term, he's willing to work with Congress on this."

As part of deficit reduction, Obama will continue to fight for the expiration of George W. Bush-era tax cuts for the wealthiest taxpayers, Plouffe said. Obama and congressional Republicans agreed to a two-year extension of those tax cuts in December in order to prevent expiration of all the Bush tax cuts for all taxpayers.

In his speech, Obama will say that "people like him .., who've been very fortunate in life, have the ability to pay a little bit more," Plouffe said on NBC's Meet The Press.

[young but wise]

5. K&R.

[stockholmer]

6. they have to end the war machine, go to single-payer health,lift cap on FICA,or lose your safety net

They spend $1.2 trillion+ per year on the total war/defense/security budget, and the for-profit medical system has exploded costs to the point where Medicaid/Medicare have over $90 trillion in unfunded liabilities over the next several decades. These dwarf the Social Security deficit.

Throughout US history, no matter what the tax rates have been for the rich, the poor, the middle, and the corporations, the most the federal government has been able to collect is around 20% of GDP.

Dollar crisis/huge inflation is probably on the way, especially if the Fed launches QE3 and doesn't raise interest rates.

But, if they do not do QE3, the economy tanks further, plus raising interest rates just several hundred basis points will add hundreds upon hundreds of billions to the deficit in terms of debt service.

Sooner or later (within the next 2 to 5 years max) there simply will be a bond-market enforcement of this huge and ever growing debt, forcing rises in the T-Bill price/yield spreads that will bring the country to its knees, just like what happened in Greece. Ireland, Portugal, soon Spain, Italy, etc.

Then the true meaning of enforced austerity will truly be known in the States.

The only other clear option is a 1% or so Tobin Tax on all financial transactional turnover (with an initial $1 million exemption). Good luck getting this passed with Congress and President (both parties) bought and paid for by the systemic controllers.