Obama to Take on Republicans over Budget Deficit
President Barack Obama will try to solve the country’s budget deficit by increasing taxes on the wealthier Americans and requiring them to pay more Social Security, which is the opposite of what the Republicans are proposing. The Republicans want to cut Medicaid, Medicare and other domestic spending.
President Obama is open to spending cuts but he would let the Americans choose between fewer benefits or higher taxes. This would be the biggest issue that can decide the winner in the 2012 presidential election.
There is no middle ground in the issue and both sides will have potential political risks. The Democrats think that the voters would reject the Republican proposal that would limit the amount of Medicare benefits. On the other side, the Republicans argue that the economy was better six years ago. They say that the Americans will want to have a government that can control the budget deficit.
President Obama is planning to end the tax breaks for households that earn more than $250,000 a year, limit Pentagon spending, increase the amount of income that is assessed for Social Security, and offer alternative ways to deliver healthcare policies.
Limiting the nation’s debt will be the next issue that both parties will debate on after last week’s budget battle. The debt is seen as a symbol of the government’s excessive spending and failure to curb its increase could lead to an economic turmoil.