President Barack Obama’s plan to end the Bush-era tax cuts for families earning more than $250,000 a year would finance the U.S. government for only eight days, Georgia GOP Rep. Tom Price charged on Tuesday.
“The president's plan to increase taxes on the upper 2 percent (of American earners) covers the spending by this federal government not for eight years, not for eight months – not for eight weeks, but for eight days,” Price, the chairman of the House Republican Policy Committee, told MSNBC.
The Obama tax-rate plan would generate only $82.3 billion a year, according to estimates by the Congressional Budget Office, Price said.
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The Bush-era tax rates expire and massive spending cuts automatically kick under sequestration on Jan. 2.
“Eight days only,” Price told MSNBC. “It's not a real solution. I’m puzzled by an administration that seems to be more interested in raising tax rates than in gaining economic vitality.”
A more balanced approach – which includes cuts to federal spending on such programs as Medicare, Medicaid, and Social Security – is what Obama should be focused on, he said.
The tax increases and spending cuts would total about $500 billion next year, Fox News reports.
In addition, about $1.2 trillion will be cut from the federal budget over 10 years should both sides fail to reach a deal to keep the nation from going over the so-called fiscal cliff, Fox reports.
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