President Obama's plan to reduce the deficit by increasing taxes on the wealthy and cutting entitlement spending went to the Joint Select Committee on Deficit Reduction, or the super committee, Monday. The plan includes $3 trillion in deficit reduction recommendations, twice as much as the super committee is tasked with finding, but many Republicans have already expressed their opposition.
Though the debt reduction plan does not make any cuts to education spending, it does provide an additional $50 billion in the adjusted baseline over 10 years to maintain the $5,550 maximum Federal Pell Grant award.
The debt plan, as outlined by the President in the White House Rose Garden Monday morning, includes "minor adjustments" to Medicare and Medicaid, tax increases primarily for corporations and wealthy Americans and savings generated by reduced military presence in Iraq and Afghanistan.
Republicans have already expressed opposition to the plan because it would raise taxes for the wealthy, which they argue hurts job creation, particularly in a poor economy. President Obama said in his address Monday that he would veto any plan that does not include tax increases on America's "millionaires and billionaires" to offset cuts to Medicaid and Medicare.
The super committee will evaluate Obama's plan, as it attempts to find a way to cut $1.5 trillion in spending. The White House and Congressional committees have until Oct. 14 to present their proposals to the committee, and the super committee has until Thanksgiving to produce a plan. If lawmakers fail to reach a final agreement by Dec. 23, cuts will take place automatically across all government agencies.
Publication Date: 9/20/2011