On Monday, President Barack Obama said that if Congress does not incorporate his call for raised taxes on millionaires, then he would surely veto the bill.
Overall, Obama is demanding cuts in entitlement programs, increases in taxes, and reductions in war costs to reduce the national deficit by at least three trillion dollars by 2022. Obama made it clear that a plan that only includes spending reductions would definitely not be enough to save the nation.
Obama said, “I will not support any plan that puts all the burden for closing our deficit on ordinary Americans. And I will veto any bill that changes benefits for those who rely on Medicare, but does not raise serious revenues by asking the wealthiest Americans and biggest corporations to pay their fair share.”
Spending cuts would mainly affect middle and lower class Americans and would in many aspects, leave the upper class untouched.
It is expected that one and a half trillion dollars would be saved by tax increases and another 1.1 trillion dollars would be saved via withdrawing from Iraq and Afghanistan.
While tax increases might not sound like the best course of action, it is the needed course of action. Bush era tax cuts are set to expire again soon and it was those tax cuts that played a major role in the growth of the national deficit over the last decade.