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President Obama, in a speech at The George Washington University, lays out his vision for addressing the nation's long-term debt and deficits, proposing a framework to reduce the deficit by $4 trillion over the next 12 years. This would come from cutting spending across the budget by $2 trillion; lowering interest payments on the debt by $1 trillion; and reforming the tax code to achieve $1 trillion in savings. The president is calling for individual tax reform that closes loopholes and produces a system that is simpler and fairer, the White House fact sheet states. The president supports the fiscal commission's goal of reducing tax expenditures enough to both lower rates and lower the deficit. According to an administration official, its baseline assumes that high-income tax cuts are not extended, as was assumed by the fiscal commission. Tax reform is expected to contribute about $1 trillion over 12 years of additional revenue to reduce the debt and deficits, he says.
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