Obama announces debt plan built on taxes for rich

WASHINGTON - In a blunt rejoinder to congressional Republicans, President Barack Obama called for $1.5 trillion in new taxes Monday, part of a total 10-year deficit reduction package totaling more than $3 trillion. He vowed to veto any deficit reduction package that cuts benefits to Medicare recipients, but does not raise new revenues.

"We can't just cut our way out of this hole," the president said.

The president's proposal would predominantly hit upper-income taxpayers, but would also reduce spending in mandatory benefit programs, including Medicare and Medicaid, by $580 billion. It also counts savings of $1 trillion over 10 years from the withdrawal of troops from Iraq and Afghanistan.

Long Island Association economist Dr. Pearl Kamer says a tax on the rich could hit some local residents hard since average incomes are higher here than in the rest of the country. But, she says both tax reform and spending cuts are needed to get the nation's financial house in order.

"Until you have a general overhaul of the tax programs and the entitlement programs, we are not going to be able to do very much about the deficit," she says. AP wire services were used in this report.

advertisement | advertise on News 12

Top 5 Must See

Suffolk Police say a Wantagh man inappropriately touched 1 Police: Camp counselor arrested for sexually abusing minors
News 12 Long Island has learned that among 2 2 retired NYPD officers from LI arrested in gun permit scheme
The incident took place on Sunday morning in 3 Mattituck woman recounts death of dog attacked by neighbor's pit bulls
Police responded to a robbery at the 7-Eleven 4 Police: Shirley knifepoint robbery not linked to pattern
The part-time Amagansett resident just announced his 'One 5 Paul McCartney announces tour stop at new Coliseum

advertisement | advertise on News 12

Features

Each week, News 12's Doug Geed explores the Check out fun things to do on the East End!

Explore the Twin Forks with News 12's Doug Geed.

Each week a different shelter visits News 12 Dog Day Fridays Series

Each week a different shelter visits News 12 Long Island with pets up for adoption.

News 12 digs deep to find Long Island's Discover Long Island's Hidden Past

News 12's Danielle Campbell digs into Long Island's roots.

News 12's Lily Stolzberg sees how much Long On The Spot

News 12's Lily Stolzberg sees how much Long Islanders know about everything and anything.

Sorry to interrupt...

Your first 5 are free

Access to News12 is free for Optimum, Comcast®, Time Warner® and Service Electric℠ video customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.

LOGIN SUBSCRIBE