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Financial harsh criticism of Obama's tax plans

Washington: The savings plans of Barack Obama encountered harsh criticism from the opposition. The proposals were a step in the direction of "class struggle", the announced tax increase for the rich a threat to economic recovery, it said in early statements of the Republicans.

Obama has held no question for debt reduction, delivered "but rather a contribution to the presidential campaign," said Republican Representative Jeb Hensarling. The announced cuts of Obama, however did not go far enough.
Obama announced in the fight against the giant national debt drastic budget cuts. Overall savings target shall be within the next twelve years to four billion dollars (2.76 billion euros). Also in defense spending should be set the ax. All expenditure items must to check on the table.

At the same time Obama but warned of further savings plans of the Republicans, who provide for radical cuts in social spending. However, he called for cooperation. The problems could only be solved together, he said, given the stalemate between Democrats and Republicans in the House.

"We have to do with what we have to reduce our deficit and come back on a path that allows us to repay our debt," Obama said in a 45-minute keynote speech at George Washington University. The austerity measures but should not jeopardize the recovery, he added.

Even against cuts in health programs for the elderly and needy does not stop Obama. Here are 500 billion U.S. dollars are spent less, but without the need for services should be reduced. "I will maintain the health programs as a promise we make each other in society," Obama said. Also, the pension system should not be touched.

The U.S. alone accumulate in that financial year to 1.65 trillion dollars of new debt - almost eleven percent of annual economic output. The total debt amounts to more than 14.2 trillion dollars. This is measured by economic output, the largest decline in the State's largest economy for about 50 years.