The U.S. president, Barack Obama, announced Monday a plan to cut the country’s fiscal deficit by about $ 3 billion, which includes cuts to government spending, reform the tax system, with more taxes on the rich, and the social security system, including Medicaid and Medicare.
“We cut so we can not pay, that’s what really matters,” said Obama on his plan that these cuts planned for the next decade.
From the Rose Garden of the White House, Bush made it clear that every citizen in America should pay a “fair share”.
For this reason, Obama proposed changes to the tax system which seeks $ 1.5 billion, specifically in the deductions for wealthy taxpayers, the tax loopholes for corporations and subsidies for agriculture.
U.S. millionaires with annual revenues of over one million dollars must pay a new tax, as proposed by Obama.
The president mentioned that it may be that “Warren Buffett’s secretary pays more taxes than Warren Buffett.”
This was driven by the same a month ago when Buffett published an article which showed his discomfort because he paid less tax than others with less income.
In the U.S. there are about 450,000 millionaires taxed 15% for profits generated by their investments. The president wants taxed at 35%.
But Republican opposition in the U.S. Congress has been demonstrating against any change in the tax regime that involves new taxes for the wealthiest people.
Medicare and Medicaid
In turn, the president’s proposal aims to reduce spending on mandatory programs of benefits, including Medicare and Medicaid by $ 580 billion, and save $ 1 trillion in 10 years to withdraw troops from Iraq and Afghanistan.
“If we do not end up that burden falling on the shoulders of our children,” Bush said.
Under the plan President Obama “is not going to add any cost to the national debt,” as stated “is already funded.”
The president made these proposals to the commission which is responsible Congressman cut the deficit by $ 1.5 billion over the next 10 years.
World stock markets reacted
The uncertainty caused by what was going to say President Barack Obama on reducing the U.S. deficit, combined with the absence of solutions to the Greek debt crisis, caused major European stock exchanges and the New York heavy casualties present .
Wall Street opened lower with the Dow fell 23.1 percent, the Nasdaq 1.54 percent, while Standard & Poor’s 500 lost 1 percent, said AFP.
The Paris Bourse was down 3.03 per cent, 3.20 per cent Frankfort, London 2.33 percent, Milan 3.28 percent and 2.24 percent Madrid.
The major Asian markets, except Japan, which was closed, had already ended the day in low, particularly Sydney, which fell 1.64 percent, Seoul lost 1.04 percent and Hong Kong, which fell 2.3 percent.