Obama Ending Tax Cuts For Rich; GOP Threatens Shutdown (Again)

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Obama: 'Nothing can be off-limits' in budget

President Barack Obama said Saturday that "nothing can be off-limits" in the budget debate — even though Republicans have said tax increases are. The president said every tax break and federal program must come under scrutiny.

With an Aug. 2 deadline looming to raise the government borrowing limit, the president used his weekly radio and Internet address to call on Congress to make a deal.

He also renewed his call for Congress to eliminate some tax breaks for the well-off as part of any agreement. Republicans want deep spending cuts without any tax increases while Obama and Democrats call for what they term a "balanced" approach. That means one that also includes new revenue in the form of higher taxes for some, though Democrats steer clear of using phrases like "tax increases" or "higher taxes."

"Now, it would be nice if we could keep every tax break, but we can't afford them," Obama said in his weekly radio and Internet address. "Because if we choose to keep those tax breaks for millionaires and billionaires, or for hedge fund managers and corporate jet owners, or for oil and gas companies pulling in huge profits without our help - then we'll have to make even deeper cuts somewhere else."

"Nothing can be off-limits, including spending in the tax code, particularly the loopholes that benefit very few individuals and corporations," the president said.

Obama listed a range of areas, some of which are considered top Democratic political priorities, that would face the chopping block if such tax breaks were allowed to continue.

"We've got to say to a student, 'You don't get a college scholarship.' We have to say to a medical researcher, 'You can't do that cancer research.' We might have to tell seniors, 'You have to pay more for Medicare,'" he said.

"That isn't right, and it isn't smart. We've got to cut the deficit, but we can do that while making investments in education, research and technology that actually create jobs."

Republicans used their weekly address to criticize Obama on the economy and renew their opposition to tax increases.

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"The president and Democrats in Congress must recognize that their game plan is not working," said Sen. Dan Coats, R-Ind. "It's time to acknowledge that more government and higher taxes is not the answer to our problem. It's time for bold action and a new plan to address our current crisis."

'Cut waste'
Treasury Secretary Timothy Geithner has warned of huge risks if Congress fails to raise the $14.3 trillion debt ceiling by August 2, potentially triggering a default that could send shivers through an already-fragile banking system.

Obama said both sides agreed spending cuts were necessary and said he and Vice President Joe Biden had made progress in getting lawmakers to agree on areas to cut.

"Over the last few weeks, the vice president and I have gotten both parties to identify more than $1 trillion in spending cuts," Obama said.

"But after a decade in which Washington ran up the country's credit card, we've got to find more savings to get out of the red. That means looking at every program and tax break in the budget — every single one — to find places to cut waste and save money."

Fears of a default, which could disrupt everything from debt payments to retirement benefits, rose after Republicans walked out of budget negotiations led Biden last week.

Coats said Obama had to step up to get a deal done.

"Now is the time for decisive leadership from this president," he said. "It's time to cast aside the false safety of political denial and re-election hopes and put the future of our country above all else."


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Sources: AP, CBS News, Fox News, MSNBC, White House, Youtube, Google Maps