Deficit Reduction and Medicare: President Obama’s Plan
On September 19, 2011, the Obama administration released its recommendations to the Joint Select Committee on Deficit Reduction, also known as the supercommittee, to cut the deficit by more than $3 trillion through a mix of revenue increases and spending cuts. The administration’s plan includes increased revenues to achieve a more balanced approach that helps prevent deeper cuts to programs that support Medicare and Medicaid beneficiaries, their families, and caregivers. Overall, the administration’s plan reduces the deficit by $1.5 trillion through increased revenues generated in part by eliminating tax breaks for the wealthiest Americans and coorporations. In addition, in his remarks announcing the plan, President Obama made a firm commitment to veto any proposal including changes to Medicare benefits that does not include significant increases in revenues.