Republicans Counter Obama Plan with Entitlement Cuts

Boehner proposes $2.2 trln of spending cuts and new revenue.

U.S. House Speaker John Boehner proposed $2.2 trillion of spending cuts and new revenue that lack what President Barack Obama calls essential for a fiscal agreement: higher tax rates for top-earning Americans.

Boehner, an Ohio Republican, said yesterday that it was a “credible plan that deserves consideration by the White House.” The Obama administration promptly rejected the proposal, which would raise the Medicare eligibility age and slow Social Security cost-of-living increases.

‘Balance’ Test

The Republican proposal “does not meet the test of balance,” White House Communications Director Dan Pfeiffer said in a statement yesterday. “In fact, it actually promises to lower rates for the wealthy and sticks the middle class with the bill.” He said the plan included “nothing new.”

Page 1 of 2

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments

Advertisement. Closing in 15 seconds.