Obama's new plan for reducing the federal debt will save more than $3 trillion over the next 10 years. He plans to raise the taxes on the wealthy and get rid spending on host government programs. And when added with the earlier budget deals the White House estimates it will save $4 trillion. However some independent budget experts said that the plan reviled on Monday falls short of his goal. Also in a Washington post article the experts go onto say "The plan also relies on an array of well-worn budget ploys that do little to advance the cause of bipartisan cooperation in taming the nation's spiraling debt." (read more here)
What do you think of Obama's new plan? Do you think it will work and start to reduce the federal debt, and do you think he is using good tactics to do so?
I think $4 trillion dollars is a lot of money to be saving and if that actually happens that would be a great start to reducing our national debt. Raising taxes and cutting spending will definitely help with the deficit but I think we should focus more on cutting spending. I don't think taxes need to be raised for the rich. Certainly not in a time when businesses and the economy as a whole are struggling. We will see what happens. This may be a political move by Obama right around election time. Let's actually see if real changes are made first before we judge it.
ReplyDeleteThere is a constant tension between the desire to address the asinine deficit and the need to stimulate the economy. While Obama pursued a policy of spending his way out of recession in his early presidency, he has turned his focus towards reducing the deficit.
ReplyDeleteFurthermore, I think that any type of bipartisan cooperation amidst a pivotal election is going to hard to achieve.
I agree that if this actually happens it would be great. I also agree with Jon that the best way to cut debt is to cut spending.
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