The battle on Capitol Hill is about to start as President Obama releases his new plan to handle the national debt. The administration will present a plan that includes reduced spending, reducedMedicare and Medicaid spending, reduced defense spending and raising taxes.
Speaker of the House, John Boehner said on Tuesday, “We don’t have deficits because Americans are taxed too little, we have deficits because Washington spends too much. At a time when the American people face skyrocketing prices at the pump, energy tax hikes are a particularly bad idea.” He went on to say, “If the president is willing to offer serious proposals that grow our economy, preserve and protect programs such as Medicare and Medicaid, and set us on a path to pay down the national debt, we’re open to hearing them.”
The bipartisan Gang of Six, a group of senators working on a 10-year debt and deficit reduction package who should have their plan available within a few weeks have mixed reactions to President Obama’s upcoming speech.
The president is offering up his new plan after Republican Rep. Paul Ryan offered a proposal that aims to cut $6.2 trillion in spending over the next ten years. The plan would reshape Medicare and other entitlement programs as well as lower the tax rate on the nation’s top tax payers. The president’s speech also follows the Treasury Departments report that states that the federal deficit increased 15.7 percent the first six months of fiscal 2011 while revenue increased 6.9 percent over the same period. The bottom line in this battle: we continue to spend more than we receive.