Debt Cuts

Today Barack Obama unveiled a plan, which ended the Bush-era tax breaks, and called for $1.5 trillion in new taxes in an attempt to slow the nation's escalating national debt. If everything goes according to plan, this new debt cut will cut the national debt by roughly $3 trillion over the next decade. “If we don’t act, the growing debt will eventually crowd out everything else, preventing us from investing in education and programs like Medicare,” he said.

The main idea behind this proposal is that high-income individuals and corporations should pay more taxes. This means individuals earning more than $200,000 a year and families earning more than $250,000 will have to bear more of the burden and are likely to be left worse off by the proposed changes to the U.S. tax system. Obama strongly believes this is the right course of action and states he “will not support any plan that puts all the burden on ordinary Americans.”