In a speech at George Washington University, President Obama proposed to cut the deficit by $4 trillion in 12 years by reducing entitlement programs, including Medicare and Medicaid and to rework Social Security. Additionally, he is calling for tax increases for people making over $250,000 a year and change parts of the tax code he thinks benefit the wealthy.
The GOP released their long-term spending resolution last week that proposes $5 trillion dollars in cuts over the next decade. .
This is in contrast to the Republican approach that House Budget Chairman Paul Ryan's (R-WI) proposed. Ryan's plan caps total spending along with deep cuts to Medicaid, Medicare, non-security discretionary and health care spending by repealing health care reform. His plan would set fiscal 2012 non-security discretionary spending at the fiscal 2006 level and set it in place through fiscal 2016.
The House is set to vote this Friday on Budget Committee Chair Ryan’s fiscal 2012 budget plan. The measure is expected to pass in the House but hold in the Senate.