NEW YORK (CBSNewYork/AP) – Saying “We can’t just cut our way out of this hole,” President Barack Obama is calling for $1.5 trillion in new taxes as part of a 10-year deficit reduction package totaling more than $3 trillion.

WCBS 880’s Rich Lamb With Mayor Bloomberg

Speaking in the White House Rose Garden this morning, Obama said, “It’s only right we ask everyone to pay their fair share,” and vowed to veto any deficit reduction package that cuts benefits to Medicare recipients but does not raise new revenues.

The president’s proposal would predominantly hit upper income taxpayers but would also reduce spending in mandatory benefit programs, including Medicare and Medicaid, by $580 billion. It also counts savings of $1 trillion over 10 years from the withdrawal of troops from Iraq and Afghanistan.

“I don’t think class warfare is a great idea. I’ve been saying this for weeks. I think that everybody should share in the revenue enhancements that we need to balance the budget, and in any reduction in government expenditures,” said billionaire New York City Mayor Michael Bloomberg.

Obama says it’s not class warfare, but math.

“You’re only going to pay off something if it’s very broad-based and everybody shares. Otherwise, I think it’s probably a non-starter in terms of getting implemented,” said Bloomberg.

The Republican reaction was swift and negative.

Minutes after the president spoke, Senate Republican leader Mitch McConnell issued a statement saying, “Veto threats, a massive tax hike, phantom savings, and punting on entitlement reform is not a recipe for economic or job growth.”

(TM and Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

Comments (6)
  1. Jonit Tyson says:

    Thirdly, you will begin your new journey to becoming a compliant taxpayer by filing the appropriate delinquent tax returns.

  2. David says:

    The US has the MOST progressive tax system of all of the western industrialized nations. Google it if you don’t believe that. So why do people continue to say that those in the upper income brackets don’t pay enough? Is it a wonder that productive people and businesses move elsewhere in this kind of environment and that business people in the US are not investing? Why take a risk and invest? If you make money the government takes it and if you lose money you take it on the chin.

    The assumption in all of this is that those that earn more don’t deserve it as if they somehow got lucky so it’s OK to take their money and give it to those that earn less. That is a very dangerous assumption to make and policies based on those kinds of assumptions discourage hard work and, in the end, hurt everyone.

    Finally, raising taxes on the wealthy will NOT plug much of the hole in the budget. Deficit this year = $1.5 Trillion. Eliminate Bush tax cuts on $250k+ = about $70 Billion/year. That is only about 5% of the hole. We need REAL tax reform that encourages growth. Yes, taxing the “wealthy” may make you feel better but it doesn’t do much to help the deficit and it won’t create growth. All in all these suggestions are a very poor substitute for something comprehensive.

    1. KPMc says:

      “The assumption in all of this is that those that earn more don’t deserve it as if they somehow got lucky so it’s OK to take their money and give it to those that earn less.”

      NO!!… the assumption is that those that earn more are benefitting from the system more than the workers who enable said millionaire to make such a profit.

      The middle class is being marginalized to the point where we will soon no longer exist. Now this may serve those of you that make a quarter million dollars a year just fine but it does no good for the rest of us struggling to do the right thing and live a middle class existence and it certainly does no good for the LONG-TERM health of this country.

      Stop lumping the hard-working middle class in with those taking public benefits and living off the government teet. The middle class work hard and put their children through college just like the elitist rich but not everyone can be a millionaire.

  3. D says:

    Says the guy who will actually have to pay taxes once in a while now

  4. Bruce Franz says:

    I’m disappointed in Mayor Bloomberg. Though I have not agreed with everything he has done, I feel he’s been a pretty good mayor overall, so I’m sorry that he feels that way.

  5. cygon says:

    Bloomberg should know. He caters to them exclusively in his city of Manhattan. He is the Manhattan mayor. None of the other boros matter to him. except maybe as feeders.

Leave a Reply