Advocates for the elderly say that President Obama broke his promise to protect Social Security, while conservatives said, he broke his promise not to increase taxes on the middle class.
Obama's budget proposals, including tax increases and cuts in benefits, an effort to reduce government borrowing and sparks still-fragile economic groupings. Obama said that this is a balanced approach is needed to tame the runaway budget deficit.
However, advocates from across the political spectrum to remind him that the last presidential election promises.
"Obviously, it would be members of Congress to set the financial priority, in fact, were elected as the representative of ordinary citizens, their needs, the maintenance of social security and health insurance National Committee official said:" The biggest Richtman. "The President's budget is not balanced plan, promised before the November elections in the United States."
Obama's budget blueprint will increase the revenue of $ 1 trillion over the next decade. Most of the tax increase will be aimed at affluent households and businesses, some people, including the tax increase on cigarettes, will hit low-income and middle-income families, too.
At the same time, Obama's plan will cut social security and health insurance and other benefit plans, while adding new infrastructure and early childhood education expenses.
The most radical solution is to use a new government measure of inflation, which will gradually reduce benefits and raise taxes at the same time.
Called chained consumer price index, the new measures than the more widely used consumer price index showed a lower level of inflation. The change is likely to have a profound impact, because so many programs to be adjusted on the basis of the beginning of each year, the consumer price index went movements.
Starting in 2015, Social Security recipients, retired military personnel and federal civilian retirees will get smaller benefits increase every year. The tax will gradually go up, because of the smaller annual adjusted income tax brackets, the standard deduction and personal exemption.
Most of the savings will come from Social Security. On average, the new measures will reduce the annual cost of living adjustments, or cola, 0.3 percentage points. This year, Coke is 1.7%. Under the new measure, there will be about 1.4%.
Obama rarely mentioned his social security during the election campaign in 2012. But four years ago, he was more active, and some liberal groups have been circulating the video evidence.
In the AARP a 2008 speech, Obama laid the tag: "John McCain's campaign has shown that the growing pressure of social security may be the best answer to cut costs - of - living adjustments or raise the retirement Age let me clear: I will not do. "
On Wednesday, Obama said he compromise.
"I do not believe that all of these ideas is the best, but I am willing to accept them as part of the compromise, if and only if they contain protect the most vulnerable Americans," Obama said.
Some programs, including anti-poverty programs such as food stamps and Supplemental Security Income, will be exempt from new anti-inflationary measures. University Pell grants will also be tax-free, will be beneficial to the president's new health care law level.
Will also be provided, in order to reduce the impact on the elderly Social Security recipients and those who get at least 15 years of Social Security disability benefits.
The new measures will be reduced by the $ 130 billion dollar plan benefits, estimated over the next decade, according to the administration. This will increase by $ 100 billion dollars in tax revenue.
Because most of the income is not subject to federal income tax, low-income taxpayers will see the largest tax increases.
Republicans noted that Obama has repeatedly promised to spare no effort in low-and middle-income families to raise taxes.
Obama's proposal would increase the federal cigarette tax from $ 1.01 a pack to $ 1.95. New cigarette tax will raise an estimated $ 78 billion over the next decade to pay the child's preschool program.
The tax on cigarettes by the health advocates believe it provides the added benefit of encouraging smokers to reduce or quit.
"Raise the price of tobacco products is one of the most effective ways to encourage people to quit smoking and to prevent children pick up the deadly habit in the first place," said Christopher Hansen, president of the American Cancer Society Cancer Action Network.
The tobacco industry criticized the proposal in a timely manner.
"We think this is obviously unfair to single out adult tobacco consumers to pay for a wide range of new government spending plans, claiming that everyone's interest with other federal tobacco tax increase, Altria spokesman David Sutton, the owner of the country's largest cigarette maker Philip Morris USA, said in a statement. "In addition, the consumption tax is regressive, a disproportionate burden on the middle and lower income consumers - the very same consumers have experienced five years of economic stagnation and high unemployment. "
The largest tax increase in Obama's budget will limit the value of itemized deductions wealthy families. The restrictions will apply to all itemized deductions, including mortgage interest, charitable contributions, state and local taxes. They will also apply to tax-exempt interest income exclusion of employer-sponsored health insurance and employee contributions.
The proposal would raise $ 529 billion over the next decade.
Charitable organizations lobbying against, because they fear that they will discourage wealthy people donated limit has been installed. Obama made a similar suggestion in previous Budgets, and received a lukewarm response from Democratic colleagues. Most Republicans oppose them.
 
 



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