Obama's Plan to Slash the Deficit

President Obama Has Plan to Slash Deficit, Despite Stimulus Bill

President Obama has a plan to slash the $ 1.2 trillion deficit he inherited when he took office. Although, the deficit will rise to $ 1.5 trillion after the passing of the stimulus bill, he plans to cut the deficit in half by the end of his first term. The withdrawal of troops in Iraq, and the wealthy having higher taxes will help reduce the deficit. With the 2010 fiscal year beginning October 1, 2009, he will unveil a plan in April in which he hopes to have the National Deficit down to $533 billion by 2013, his last year of his term as President. His projected $533 billion deficit by the end of his term would be a reduction from 10% of the total domestic product, down to 3%, a sustainable level according to economists.

In President Obama's weekly radio address, he laid out the details of his strategy, in which he would invest in the things that were necessary and cut what is not. President Obama plans to introduce proposals of tax increment's on investment income for hedge funds and private equity. This tax increase could potentially return to 39.6% from 35% where it is currently. Also, President Obama has called for an end in 2010 to the Bush Tax Cuts on income, capital gains, and dividends for individuals making $250,000 or more.

Due to the rising deficit, some believed that President Obama would have to put his plans for health care reform on hold. However, in his budget plan, he wants to increase health care coverage to over 46 million uninsured individuals. He believes that he will be able to do this without growing the economy even more by making cost-saving changes. When it comes to energy policy, President Obamas has proposed that there will be new revenues by 2012 from requiring companies to purchase a government permit for greenhouse gas emissions above a certain point.

I believe that President Obama is trying to help the citizens of the United States.The problems with the financial deficit are not a quick fix. It will take many years to see improvements, if we ever do. I just hope that people understand that Obama is human and can't perform miracles.