Like stopping the expensing of private jets would save a Trillion.
Obama calls on Republicans to agree to some tax increases
By Zachary A. Goldfarb, Updated: Wednesday, June 29, 7:20 AM
WA PO
President Obama on Wednesday used his harshest language yet to urge congressional Republicans to agree to targeted tax increases as part of a deal to reduce the annual budget deficit, saying that those lawmakers hold an indefensible position and predicting that they would reevaluate it.
At a press conference in the East Room of the White House, Obama said he is willing to cut spending on a range of programs by more than $1 trillion, to trim the defense budget and to look for ways to control entitlement costs. But he said Republicans must agree to allow taxes to rise on the wealthiest Americans and to eliminate tax breaks for oil companies and corporate jet owners.
"It would be hard for Republicans to stand there and say that the tax break for corporate jets is sufficiently important that we're not willing to come to the table and get a deal done," Obama said. "What we've seen in negotiations here in Washington is a lot of people say a lot of things to satisfy their base or to get on cable news."
"Hopefully leaders at a certain point rise to the occasion and do the right thing for the American people," the president added.
At the press conference, the president also discussed the United States' role in Libya and the question of gay marriage in the wake of New York's new law allowing the practice.
Negotiations between the White House and congressional Republicans over reining in the nation's debt have stalled over the issue of taxes. Republicans are demanding a deal to reduce the deficit in exchange for raising the federal limit on borrowing. The Treasury Department has set an Aug. 2 deadline for raising the debt ceiling before the nation defaults on its debt.
Obama also criticized Republicans who have accused him of not being involved enough in the deficit reduction talks, saying that he has led debate on the issue and that now it's time for Congress to make a decision.
"They need to do their job," Obama said, adding that lawmakers would have to cancel their summer recess trips if they can't strike a deal.
Mentioning his two daughters, Obama said that if Malia and Sasha could do their homework on time, there's no reason that Congress should be taking so long to work out a plan.
Obama called for Congress to take new new action to bolster the economy, urging lawmakers to extend a payroll tax cut, make loans to build new roads, reform patents and advance trade deals.
"The truth is our economic challenges are not going to be solved overnight," Obama said. "There are a number of steps Congress could be taking right now ... that would help put more Americans back to work."
The nation's economic recovery has slowed significantly, with unemployment stuck around 9 percent. Obama has been traveling across the country emphasizing the importance of investing in economic growth at the same time that the government seeks to cut spending.
The White House is pushing to eliminate or scale back a series of tax deductions in hopes of raising as much as $400 billion in new revenue over 10 years. The proposal would cut tax breaks for oil companies, for hedge funds and for executives who use private jets. Republicans have refused to entertain any new taxes, arguing that they would harm the economy.
Last December, Congress agreed to slash the payroll tax for employees to 4.2 percent from 6.2 percent in an effort to boost consumer spending and bolster the economy. Republicans have opposed including a payroll tax cut measure in the deficit deal, but Democrats have insisted on it.
Obama has been trying to balance his commitment to reining in the deficit with his need to confront the tepid economic recovery. He has been traveling the country each week — visiting politically important states — pushing for job creation and investments in technologies that could bolster American manufacturing. On Tuesday, he spoke at a factory that makes alloys and wings for airplanes in Bettendorf, Iowa, citing it as an example of the manufacturing jobs he wants to help create throughout the country. The visit also was reminiscent of the stops he made in 2007 during his campaign for president.
Obama was also questioned about U.S. participation in the Libya operation and whether his decision to send war planes without congressional approval is legal. Asked whether he believed the War Powers Resolution is constitutional, Obama demurred, saying he is not a Supreme Court justice.
But he said the contention from lawmakers that the mission, now in its fourth month, requires congressional approval is too focused on "process" rather than on the substance of the operation.
He defended the effort to try to oust Libyan leader Moammar Gaddafi and said that he has followed the original parameters he set for U.S. participation, including not sending ground forces to Libya.
"We have carried out that narrow mission in exemplary fashion," the president said.
Obama said Gaddafi is feeling the strain of a NATO-led operation that is increasingly targeting the capitol, Tripoli.
On Tuesday, the Senate Foreign Relations Committee rejected the argument that Obama can carry out the Libya mission without Congress's approval. But the panel then voted to authorize the intervention.
The president gave another characteristically careful message on the issue of gay marriage, praising New York's passage of a gay marriage bill but stopping short of endorsing the practice himself.
He did say that he thinks the country is seeing "a profound recognition on the part of the American people that gays and lesbians and transgender persons are our brothers and sisters, our children, our cousins, our friends, our co-workers, and that they've got to be treated like every other American."
"And I think that principle will win out," Obama predicted. "I think we're moving in a direction of greater equality, and I think that's a good thing.""
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