Added by Gary Dunn on January 27, 2011
President Obama’s plan to cut on federal spending for five years was not appreciated by the Republicans. They have inferred that the president would have to do better than this to handle the national debt.
The Congressional Republics think that larger cuts in the budget like slash of $2.5 trillion in a decade or $500 billion in one year would be more fruitful.
President Obama called for cuts in entitlement spending, Medicare and Medicaid. He also called for a ban on earmarks. Along with this President also requested that the recently approved tax-cut extension should expire in two months.
In his speech, President Obama also set few long-term benchmarks, which meant that more spending would be required. He said that 80% of the Americans shall be provided high speed rail access in next 25 years.
He also said that 98% of the Americans should be provided with high speed internet in the next 5 years. He called for an estimate of 1 million electric vehicles on the roads by 2015.
The President also proposed reduction in corporate tax rate along with simplifications in the tax system.
The Republicans appreciated the president’s tone of speech. However they were concerned how the additional spending will result in a balanced budget.