Watch Live As Obama Shares His "Vision For A Balanced Approach to Reducing Our Deficit"

Tyler Durden's picture

Hide your millionaires and get your popcorn ready. This will be good.

 

And some details of his actual plan from Market News:

Deficits and Debt

* The Joint Committee plan significantly reduces deficits and puts the country on a fiscally sustainable path by 2017.

– The deficit is projected to fall to 2.3 percent of GDP in 2021. By comparison, if we did nothing, the deficit would be 5.5 percent of GDP in 2021.

– Reaches “primary balance”– where our current spending is no longer adding to our debt — in 2017. At that point, current spending is no longer adding to our debt, debt is falling as a share of the economy, and deficits are at a sustainable level.

* The President’s plan would reduce the national debt as a share of economy.

– Stable or falling debt as a share of the economy is a key metric of fiscal sustainability.

– If we did nothing, the national debt would rise to 90.7 percent of GDP in 2021. By contrast, under the President’s plan, the national debt would fall to 73.0 percent of GDP in 2021 — or an improvement of almost 18 percentage points.

Health Savings

* The plan includes $320 billion in health savings that build on the Affordable Care Act to strengthen Medicare and Medicaid by reducing wasteful spending and erroneous payments, and supporting reforms that boost the quality of care. It accomplishes this in a way that does not shift significant risks onto the individuals they serve; slash benefits; or undermine the fundamental compact they represent to our Nation’s seniors, people with disabilities, and low-income families.

* The plan includes $248 billion in savings from Medicare.

– Within this total, 90 percent of the savings, or $224 billion, comes from reducing overpayments in Medicare.

– Any savings that affect beneficiaries do not begin until 2017.

– The plan does not propose to change the eligibility age for Medicare benefits.

* Other health and Medicaid savings amount to $72 billion.

* Because of the structural nature of these reforms, health savings grow to over $1 trillion in the second decade.

* The President will veto 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.

Other Mandatory

* The plan includes $250 billion in savings from other mandatory programs.

* Included within these savings are:

– $33 billion in savings from agriculture subsidies, payments, and programs

– $42.5 billion in reforms to Federal employee benefit programs, including programs for civilian employees and military personnel.

– $4.1 billion from the disposal of unused government assets.

– $92.2 billion from restructuring government operations and reducing government liabilities.

– $77.6 billion from improving Federal program management and reducing waste and abuse.

Revenues

* The President calls on the Committee to undertake comprehensive tax reform, and lays out five principles for it to follow: 1) lower tax rates; 2) cut wasteful loopholes and tax breaks; 3) reduce the deficit by $1.5 trillion; 4) boost job creation and growth; and 5) comport with the “Buffett Rule” that people making more than $1 million a year should not pay a smaller share of their income in taxes than middle-class families pay.

– Tax reform should draw on the specific proposals the President has put forward, together with elimination of additional inefficient tax breaks. If the Joint Committee is unable to undertake comprehensive tax reform, the President believes the discrete measures he has proposed should be enacted on a standalone basis. Their enactment as a standalone package still would significantly improve the country’s fiscal standing, represent an important step toward more fundamentally transforming our tax code, and serve as a strong foundation for economic growth and job creation.

– To advance this debate, the President is offering a detailed set of specific tax loophole closers and measures to broaden the tax base that, together with the expiration of the high-income tax cuts, would be more than sufficient to hit the $1.5 trillion target. These include:

* Allowing the 2001 and 2003 tax cuts for upper income earners to expire ($866 billion)

* Limiting deductions and exclusions for those making more than $250,000 a year ($410 billion)

* Closing loopholes and eliminating special interest tax breaks (approximately $300 billion)

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Cognitive Dissonance's picture

I got the front row seat. Suck my fumes.

I'm making book boys. What's the over/under on the number of DOW points we lose? 

fuu's picture

He takes us to -300 territory. Or -80 from here.

Long-John-Silver's picture

Unlike Gold and Silver you can eat peas.

Lord Blankcheck's picture

I eat my peas with Silverware.sterling that is

redpill's picture

The new mantra is not just millionaires, but "Millionaires and BILLIONAIRES" just to drive the point home that this is really about those yacht-owning, private jet flying ultra-wealthy (ironically the same type of folks who would be able to escape such liability internationally if they so chose)...

But of course that's not what it is. It's an arbitrary $250k boundary that more and more people will fall into every year thanks to inflation, a level at which many small business owners would see diminishing returns by trying to expand their business and hire more people, prompting many to elect not to.

Perhaps more retarded is going after investment income, as it hurts everyone that saves and invests, not just the ultra wealthy.

And in the end, regardless of how one feels about who should be taxed and how much, there is another party in this scenario: a federal government that does not have a scrap of credibility and does not deserve one penny more than it already gets.

I'll tell you what, I don't want Warren Buffet taxed more, not only because theft remains theft regardless of scale, but because I don't want any of his money to go into the corrupt hands of the criminals we call leaders.

JP McManus's picture

I believe it's down to $200k a year, but, honestly, I haven't read the entire Jobs Act yet.  I heard we have to pass it before we can find out what's in it.

CrazyCooter's picture

I think the 250k boundary is quite intentional; we are all going to be making that kind of money in a couple years. The catch is we will be struggling to afford basic food and energy needs at the same time.

Fuckers.

Regards,

Cooter

JP McManus's picture

Correct.  It won't matter when inflation forces the minimum wage up to $100/hr.  Then EVERYONE is "rich".

redpill's picture

I think that's right around the time that they make enough things illegal that we're all criminals too.  So we're all rich criminals.  Not even a good hearty round of liberal guilt can assuage such a thing, we'll be obliged to donate ourselves to the state entirely.

SRV - ES339's picture

To all of the above...

Hope you choke on your Sushi and through up all over those loafers. Go ahead, keep towin' the TP "Big Lie"... but the gravy train is pulling out of the station... get over it!

Of course there are millions of unemployed and poor "slackers suckling on the public teet" that would be hapy to swap lives with any of you poor downtrodden souls... what's this, your not so bad off after all... what a shock... lol!

redpill's picture

You myopic fool.  Who do you think the unemployed are going to get a job from?

TruthInSunshine's picture

I am laughing my ass off at this moment, and I pass thy gift to you now:

EU to call for US and Japanese action on public deficits at G20 this week according to an EU document

 

09-19 13:05: EU to call for US and Japanese action on public deficits at G20 this week according to an EU document

 

I am happy to see the EU call out little Keebler Elf, Timmay Geithner.

SRV - ES339's picture

So in your Matrix fanatsy, all those business owners will close up shop and live off Tea Party love if we raise their taxes... lol?

You sure you didn't go with the blue pill?

j0nx's picture

I see ZERO signs that inflation is or will be transferring to wages at any point in the near future. Too much global wage arbitrage for that to happen. Nope you get the worst of all outcomes with hyperbiflation.

the not so mighty maximiza's picture

naaaa Bernake has his finger over the enter key, they are pumping as soon as he speaks.

X.inf.capt's picture

dont forget the coffee

im long coffee, short bullets...

the not so mighty maximiza's picture

Don't forget the Babes, everything else is secondery

Oh regional Indian's picture

All you guys have to notice is the Gold Fringed Flag behinid him. Perpetual state of War Emergency, oh clueless ones.

All Kabuki. Theater. This is no ordinary puppet pulpit. it IS a Bully Pulpit.

Do your research...

ORI

Hey America!

X.inf.capt's picture

i think our president going to say something interesting...

GOLD JUST FELL OFF A CLIFF,

CrazyCooter's picture

I have been waiting to buy my next OZ ... c'mon dip!

Regards,

Cooter

SheepDog-One's picture

X.inf.capt yea something interesting is going to be said, 'No QE3'.

X.inf.capt's picture

well, dog, if youre in stocks.....

LOOK OUT BELOW.

SheepDog-One's picture

'If Im in stocks'? No, not in stocks, as Ive been saying daily here for at least 8 months.

X.inf.capt's picture

i know your not, dog, i was talking to the 'long stock' people.

fuu's picture

Ok so I lost on that one hahah.

wang's picture

fortunately I blocked the White House media player and the LSO's it leaves behind on any and all who open this page

A Lunatic's picture

Firefox will cure that. Too bad it wont fix the teleprompter.

CrazyCooter's picture

Use FireFox. Set the privacy options to clear everything except site preferences when firefox is closed.

I also use AdBlockPlus (plugin) which not only blocks a lot of banner adds and crap, but also lets me block titty avatars while browsing ZH at work.

Oh, and a good firewall.

If you are garnering "spy" attention beyond these measures, well, you have bigger issues to deal with.

Regards,

Cooter

Cdad's picture

Hard to say how many points.  However, there is no doubt that criminal syndicate Wall Street bankers will seize the teachable moment to set President Zero straight on who the tax targets cows really are...and it ain't them.

We draw closer and closer to the Lear jet exodus in America.

SheepDog-One's picture

Millionaires today are mere peasants to the $500 billion club boys who run the puppets.

Cdad's picture

Who are these sheeple Americans who believe this guy is a great orator?  He sounds like the regular two bar stools down bitching about "unfairness."  

Surreal.  Every time this guys speaks, I tumble backwards down the cosmic bunny hole.

Don Birnam's picture

Tax the "millionaires" -- in an economy which has arguably been in a prolonged recession since 2008...some would go as far as having entered depression, in some sectors. 

Ah, yes -- President Hoover raised the top rate back in '29. The result contributed to what we all identify as "history."

"Brother, can you spare a SNAP card -- or better still, how much can I get for a spiffy Pontiac Aztek ?"

http://blsciblogs.baruch.cuny.edu/his1000spring2011/files/2011/02/1929-s...

Cognitive Dissonance's picture

Your image is actually a wonderful example of debasement of the currency since the Fed was hatched.

Cheap wheels

Translational Lift's picture

What a crock-o-shit....same ole same ole....this ahole needs a new speach writer!!

WallStreetClassAction.com's picture

Hide yo millions,

hide yo gold,

they are taxing everyone here

William113's picture

Oh look he's late again.

oogs66's picture

being late is a sign that he has the power?  maybe occassionally, but this is just plain and simple rude at this point

Dolar in a vortex's picture

Don't be silly, you're early.

He's always on time.

rcintc's picture

27 minutes now...this is beyond inconsiderate.

the not so mighty maximiza's picture

maybe a bird will poop on his head, hey you never know.

PivotalTrades's picture

Until we eradicate the pernicious idea held by the Democrats that they are entitled to the product of your labor; which they then use to buy votes and swell the ranks of their tribe, there is no hope that the system that once provided the greatest standard of living will survive.

duo's picture

Let's just use the AMT form, but change the rates to make it somewhat neutral to today's code.  It's a two-page form, isn't it?  That's simplification.