TDMVPDPOY
02-23-2009, 08:05 AM
http://www.news.com.au/heraldsun/story/0,21985,25096040-663,00.html
Barack Obama rolls out rich tax and slashes Iraq spending
Carly Crawford
February 24, 2009 12:00am
BARACK Obama plans to increase taxes on the rich and slash Iraq War spending to halve the US's $1550 billion-a-year budget deficit.
The President is expected to roll out his budget proposals this week, beginning with a "fiscal responsibility summit" of officials and experts today, his first address to Congress tomorrow and the unveiling of his 2010 budget on Friday.
Aides at the weekend revealed Mr Obama's ambitious goal of reducing the deficit to $800 billion by the end of his first term in 2012.
He is worried that without action, federal borrowing could hamper economic growth in the US, suffocating efforts to create new jobs.
When he took office in January, Mr Obama inherited a US economy in deep crisis, laden with an annual budget deficit of more than $1550 billion.
That will swell even more with the $1220 billion stimulus package - the most expensive piece of legislation ever made in the US - which Mr Obama signed into law last week.
"We have been on an incredible spending spree," Senate Minority Leader Mitch McConnell said.
"So, I think it's timely that the President's having a meeting at the White House tomorrow to talk about the deficit because we're spending money at a very, very rapid pace, far beyond anything in history."
Employers at the weekend began a campaign of tax reductions for workers, mandated by the stimulus plan.
A senior administration official said the next fiscal step would aim to slash spending in Iraq and raise taxes on the "wealthiest Americans".
Mr Obama's campaign had forecast a saving of about $140 billion a year by withdrawing combat troops from Iraq. But the real potential for savings on military spending remains unclear, with the administration ordering an increase of 17,000 troops to Afghanistan.
Barack Obama rolls out rich tax and slashes Iraq spending
Carly Crawford
February 24, 2009 12:00am
BARACK Obama plans to increase taxes on the rich and slash Iraq War spending to halve the US's $1550 billion-a-year budget deficit.
The President is expected to roll out his budget proposals this week, beginning with a "fiscal responsibility summit" of officials and experts today, his first address to Congress tomorrow and the unveiling of his 2010 budget on Friday.
Aides at the weekend revealed Mr Obama's ambitious goal of reducing the deficit to $800 billion by the end of his first term in 2012.
He is worried that without action, federal borrowing could hamper economic growth in the US, suffocating efforts to create new jobs.
When he took office in January, Mr Obama inherited a US economy in deep crisis, laden with an annual budget deficit of more than $1550 billion.
That will swell even more with the $1220 billion stimulus package - the most expensive piece of legislation ever made in the US - which Mr Obama signed into law last week.
"We have been on an incredible spending spree," Senate Minority Leader Mitch McConnell said.
"So, I think it's timely that the President's having a meeting at the White House tomorrow to talk about the deficit because we're spending money at a very, very rapid pace, far beyond anything in history."
Employers at the weekend began a campaign of tax reductions for workers, mandated by the stimulus plan.
A senior administration official said the next fiscal step would aim to slash spending in Iraq and raise taxes on the "wealthiest Americans".
Mr Obama's campaign had forecast a saving of about $140 billion a year by withdrawing combat troops from Iraq. But the real potential for savings on military spending remains unclear, with the administration ordering an increase of 17,000 troops to Afghanistan.