Obama to Give Speech Over New Budget Plan

By Jon E. Dougherty at 11 Apr 2011

(Newsroom America) -- President Obama plans to address the nation to lay out his vision of a long-term budget and spending plan for the nation on the heels of getting a deal done with House and Senate leaders to avoid a government shutdown on Friday.

Everything will be on the table, from Medicare and Medicaid to defense and other policy issues such as tax hikes on wealthier Americans, reports said Monday.

In the House, the GOP majority plans to vote on Rep. Paul Ryan's "Path to Prosperity" proposal which seeks to chop $6 trillion in federal red ink over the next decade. Democrats are likely to oppose the measure as too extreme and harmful to the poorest of Americans.

Friday's last-minute deal funding the government through Thursday is no guarantee a longer-term deal for the remainder of the fiscal year that is being inked Monday will prevail, but the leadership of both parties voiced confidence the measure would be passed by Wednesday.

Republicans hailed the $38.5 billion in cuts in the current budget proposal agreed upon by the president and Senate Majority Leader Harry Reid, D-Nev., as a victory, but they seemed to understand that larger battles over raising the debt ceiling and the 2012 election year budget loomed.

"We've had to bring this president kicking and screaming to the table to cut spending," House Majority Whip Eric Cantor of Virginia told "Fox News Sunday."

But David Plouffe, an adviser to Obama, said his boss has always looked for ways to make the federal government more austere. And he said Obama, in a speech Wednesday, will reveal how best to reduce expenditures over the nation's primary health programs for seniors and the poor.

"You're going to have to look at Medicare and Medicaid and see what kind of savings you can get," Plouffe told NBC's "Meet the Press" on Sunday.

Besides cutting some programs, however, Obama is likely to also push for new taxes, especially on wealthier Americans and changing parts of the tax code he believes benefits them as a way to bring the budget back in line - setting up a new battle with Republicans.

"Every corner of the federal government has to be looked at here," Plouffe said. "Revenues are going to have to be part of this."

© 2010 Newsroom America.

Contact Jon E. Dougherty

Follow us on Twitter!


[D] [Digg] [FB] [R] [SU] [Tweet] [G]