Does President Obama intend to cut federal spending to reduce the deficit?
In addition to investing in growth, President Barack Obama and his financial team have already identified more than $2 trillion that can be cut from the budget over the next decade by making tax laws more equitable, introducing efficiencies, and ending programs that dont perform. Here are some examples of estimated savings over the next 10 years. • Save $354 billion by eliminating certain tax loopholes for large businesses. • Allow tax cuts that benefit the wealthiest one and two percent of taxpayers to expire, recovering $318 billion. • Promote a market-based cap on carbon emissions, which would raise at least $646 billion. The cap and trade proposal is the leading contender for this program; FCNL prefers a carbon tax, a quicker and simpler way to reduce carbon emissions. (See FCNLs February 2009 Washington Newsletter.) • Obamas plan to withdraw troops from Iraq, even as the United States escalates operations in Afghanistan, will save $1.5 trillion over the next 10 years.
