20th
Details on Obama jobs / deficit plan…
Remember, the “supercommittee” deadline to present its plan to save $1.5 trillion over 10 years is Nov. 23. Obama’s approach has two parts: a $447 billion jobs plan (stimulus) and a 3.6 trillion deficit reduction plan over 10 years.
Note: this number does not include the $900B in spending cuts passed in August in debt ceiling deal.
BOTTOM LINE: Note: This will likely be passed, if passed at all, in several different bills. Main standoff is over tax increases. Republicans want none, Obama has included in his plan a threat to veto any bill that cuts Medicare without tax increases on the wealthy. Obama has leverage this time round that he didn’t have in the August debt ceiling deal. Namely, by doing nothing, the Bush tax cuts automatically expire Dec. 31.
#1 DEFICIT REDUCTION
Topline: Reduce deficit by 3.6 trillion over 10 years
- 1.5 trillion from tax increases ($800 billion from expiration of Bush-era tax cuts for those making $250,000+ plus $700 billion from closing tax loopholes (for those making over $250,000, oil companies, corporate jet-owners)
- 1.1 trillion in savings from winding down Afghanistan and Iraq
- No change to Social Security
- No change to Medicare eligibility age (currently 65)
- $320 billion cut to Medicare ($248 billion) and Medicaid ($72 billion) that won’t kick in till 2017 for beneficiaries
- $260 billion in other domestic spending cuts
- $430 billion cuts from additional interest savings
- “Buffett Rule” - Guiding principle (no dollar figure attached ) that individuals making over $1 million pay at least the same percentage of their earnings as middle-income taxpayers. - Threat to veto any bill that cuts Medicare without tax increases on the wealthy.
#2 JOBS PLAN
Topline: $447 billion jobs bill to get the economy going
- $245 billion payroll tax cut for individuals and businesses
- $62 billion in unemployment benefits extension and hiring programs
- $140 billion in infrastructure, schools, investment ($50 billion in surface transportation, $30 billion to refurbish schools, $35 billion to avoid layoffs among teachers and first responders, plus other small ticket items)
