Obama will be unveiling his own deficit plan that consists of $3 trillion of deficit reduction. It is his own plan and it isn't a "compromise".
http://online.wsj.com/...
Jared Bernstein says it best about this Obama proposal:
"I think this is less 'Let's be the grownups in the room and start at the 50 yard line,' and more 'Let's start on our side of the field,'" said Jared Bernstein, former economic adviser to Vice President Joe Biden.
Update 1: Obama says that he will veto any legislation that cuts the deficit by spending cuts only and does not include revenue increases on the wealthy. WOW!
http://www.nytimes.com/...
In laying out his proposal, aides said, Mr. Obama will expressly promise to veto any legislation that seeks to cut the deficit through spending cuts alone and does not include revenue increases in the form of tax increases on the wealthy.
That veto threat will put the president on a direct collision course with the House speaker, John Boehner, who said last week that he would not support any legislation that included revenue increases in the form of higher taxes.
Update 2: A probably more accurate statement of the veto threat is from Politico.
http://www.politico.com/...
The president will veto any plan that “takes one dime from the Medicare benefits seniors rely on without asking the wealthiest Americans and biggest corporations to pay their fair share,” an official said.
Update 3: Republicans are going to EXPLODE! I LOVE IT!!!!
This proposal is one that if nothing is done by the supercommittee that Obama would propose this as something that he would run on in 2012.
There will be no changes to social security and there will not be an increase in age of eligibility of Medicare.
In addition to not including any changes to Social Security, Mr. Obama won't call for raising the Medicare eligibility age from 65 to 67, an idea he was willing to agree to in negotiations this summer with House Speaker John Boehner (R., Ohio).
Instead changes to Medicare will consists of:
His proposed changes to Medicare are expected to focus on cutting payments to providers of medical services, people familiar with the plan said.
Instead $3 trillion deficit reduction will come half cuts and half tax increases:
President Barack Obama is expected to offer a new plan to reduce the federal deficit by about $3 trillion over a decade, roughly half of which would come from tax increases, people familiar with the proposal said.
The tax increases that President Obama is proposing:
The more than $1.5 trillion in tax increases that Mr. Obama is expected to propose would include the expiration in 2013 of the Bush-era tax cuts for families making more than $250,000 a year. Mr. Obama will also include a set of tax increases he put forward last week to pay for his $447 billion jobs bill: limiting itemized deductions for families with taxable income of $250,000 or more a year, and ending tax breaks for oil companies, corporate-jet owners and investment-fund managers.
Obama is also proposing the "Buffett rule":
Mr. Obama will sound a populist tone, with the inclusion of a so-called "Buffett Rule," named after billionaire Warren Buffett, which would prevent millionaires from paying lower tax rates than middle-class Americans.
On the "Buffett Rule," for example, the president is likely to stop short of saying what the minimum tax rate should be for millionaires or how much money the new policy would raise.
Of course Republicans call it "class warfare" and say that increasing taxes on the wealthy will hurt the economy. The Obama team disputes that:
A White House official disputed GOP contentions that Mr. Obama is seeking tax increases in the current weak economy. "Let's be clear, the president is not proposing a single penny of tax increases this year or next, on even high-income people," said Gene Sperling, the president's top economic adviser.
For corporate taxes President Obama will be more specific:
The White House is likely to be more specific in part of the proposal that outlines changes to the corporate tax code, calling for lower tax rates accompanied by new limits on deductions.
I guess President Obama has finally learned his lesson. The lesson is stop negotiating with yourself while Republicans are drawing lines in the sand.
Here is the WaPo article that basically says the same thing:
http://www.washingtonpost.com/...