Republicans Assail Obama’s “Class Warfare”

President Obama wants to cut $4 billion in government spending by the year 2023, but not via cuts in the U.S. social support system. Instead, he wants to increase taxes on the rich. That’s a red flag for the opposition.

President Obama’s plans for economizing are running into rock-solid criticism from opposition Republicans, who responded by saying his suggestions are a step toward “class warfare” and that taxing the rich would imperil the economic recovery. Republican Representative Jeb Hensarling said Obama’s speech was less about reducing the deficit than it was about “winning the next election.” Republicans said Obama’s cuts didn’t go far enough.

Even before he had delivered the speech, Republicans began criticizing Obama’s plans as inadequate to reduce the $14 trillion deficit. They also spoke out against any tax increases. Speaker of the House John Boehner ruled out tax increases as a negotiating point in deficit reduction saying, “Tax increases are unacceptable and are a nonstarter.”

Obama had announced drastic budgetary cuts in the battle to reduce the deficit. He set a $4 trillion goal for reductions over the next 12 years, saying that the defense budget would be included in the reductions. He added that every line item of expenditure would be on the table for review. At the same time, Obama warned against Republican proposals to achieve savings with radical reductions in social spending, and he called for bipartisan cooperation in the effort, in view of the stalemate between Democrats and Republicans in Congress.

“We have to live within our means, reduce our deficit, and get back on a path that will allow us to pay down our debt,” Obama said during his 45-minute address at George Washington University. He also added that the economy measures should not jeopardize the recovery. Obama didn’t even spare healthcare services for the elderly and needy, saying that he proposed cutting spending by $500 billion, but that services would not be reduced.

Obama said, “I will preserve these healthcare programs as a promise we make to each other in this society.” He also insisted that Social Security not be touched. The United States will add $1.65 trillion to its debt during this budget year alone — nearly 11 percent of GDP. The total debt amounts to over $14.2 trillion. When measured against GDP, that’s the largest deficit in nearly 50 years for the world’s biggest economy.