Washington Drawing a bright line with congressional Republicans, President Barack Obama is proposing $1.5 trillion in new tax revenue as part of his long-term deficit reduction plan, according to senior administration officials.
The president today will announce a proposal that includes the new taxes, nearly $250 billion in reductions in Medicare spending, $330 billion in cuts in other mandatory benefit programs, and savings of $1 trillion from the withdrawal of troops from Iraq and Afghanistan.
The plan includes no changes in Social Security and does not include an increase in the Medicare eligibility age, which the president had considered this summer.
All in all, the president’s plan is as much an opening bid as it is a political statement designed to draw contrasts with Republicans, who control the House of Representatives.
The new taxes in particular have little or no chance of passing Congress as proposed. Republicans were already lining up against the president’s tax proposal before they even knew the magnitude of what he intended to recommend.
The $1.5 trillion in tax revenue would include about $800 billion realized over 10 years from repealing the Bush-era tax rates for couples making more than $250,000. It also would place limits on deductions for wealthy filers and end certain corporate loopholes and subsidies for oil and gas companies.
By adding the tax revenue, about $580 billion in proposed mandatory spending cuts, the savings from troop withdrawals and $1 trillion in spending cuts already in place, the combined deficit reduction would total about $4 trillion over 10 years.