Obama Unveils Tax Increases, Geithner Faces Grilling

Obama Michigan

Photo: AP Photo/Paul Sancya

President Barack Obama unveiled his deficit reduction proposal this morning, including $1.5 trillion in tax increases.Calling once again for an end to partisanship, Obama gave a decidedly political speech — slamming Speaker of the House John Boehner’s opposition to tax increases.

The administration claims Obama’s plan will cut $4.4 trillion from the federal deficit over the next decade, when savings from the August debt ceiling deal and the wars in Iraq and Afghanistan are included.

Republicans are already criticising the tax increases, which come from eliminating the Bush tax cuts, and cutting deductions for wealthy individuals and corporations, as “class warfare.” Obama also announced the populist “Buffett Rule,” which would guarantee that wealthy Americans pay at least the same tax rate as those with middle incomes.

Read More: Fact Sheet: Obama’s Tax And Deficit Plan
Obama also issued a sternly worded veto threat against any bill that “takes one dime from the Medicare benefits seniors rely on without asking the wealthiest Americans and biggest corporations to pay their fair share.”

Treasury Secretary Tim Geithner, defended the Obama plan from the White House Press Room, calling it the best policy alternative. Geithner also denied allegations that he slowed Obama’s request for a plan to dissolve Citigroup during the financial crisis.

Read our coverage of this morning’s events below:

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