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    July 07, 2011

Obama Proposes Bigger Cuts to Control US Debt

   VOA News
   President Barack Obama makes a statement to reporters about debt
   ceiling negotiations, July 5, 2011
   Photo: AP
   President Barack Obama makes a statement to reporters about debt
   ceiling negotiations (File Photo - July 5, 2011)

   U.S. President Barack Obama is proposing a bolder package to slash
   spending and increase some tax revenue in an effort to break the
   political impasse over America's growing debt.
   White House and congressional aides say Obama will propose doubling the
   amount of money trimmed from the country's budget deficit to $4
   trillion when he meets with Congressional leaders Thursday.
   They say the new package will include significant cuts to Social
   Security and Medicare - two of the country's biggest social safety
   nets. It would also call for increasing tax collections from large
   corporations and letting tax cuts expire for the wealthiest households.
   Talks between the White House and Republican leaders in Congress fell
   apart two weeks ago, when they failed to agree over a package that
   would have reduced the country's budget deficits by about $2 trillion
   over the next 10 years.
   The top Republican in the House of Representatives, Speaker John
   Boehner, has said any deal that includes tax hikes "cannot pass the
   House." But House Majority Leader Eric Cantor said Wednesday
   Republicans would be willing to discuss closing some loopholes that
   give tax breaks to some corporations and wealthy Americans.
   Some members of Obama's Democratic Party have already expressed
   concerns about any cuts to the nation's social safety nets.
   Washington has run up a total debt of $14.3 trillion, the current legal
   borrowing limit. If the limit is not increased before August 2, the
   U.S. could default on some of its loans.
   U.S. Treasury officials have repeatedly warned of "catastrophic"
   economic consequences if Congress does not raise the so-called debt
   ceiling before August 2.
   Using the [1]social media site Twitter Wednesday, Obama took a jab at
   Republicans for earlier refusing to consider tax changes in the debt
   negotiations. He said Republicans cannot threaten to force the U.S. to
   default on its loans to protect tax loopholes for the "very richest
   Americans."
   Opposition Republicans say they want to see drastic cuts in spending
   before they will agree to an increase.

References

   1. http://www.voanews.com/english/news/usa/President-Obama-to-Host-Twitter-Town-Hall-on-Economy-125067304.html

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