This has to be a joke, $4 Trillion in over 12 years, how about we double that to $8 Trillion and instead of 12 years cut it to only 3 years. Yes this is very achievable, just start cutting everything, there is no need to keep the spending going like it is going, raising the debt ceiling is just another mistake they are ready to do, if they were so interested in cutting the deficit how about no raise in the debt ceiling in the next few weeks and start cutting everything, everywhere right this second. Nah thats not going to happen, the US economy as upside down as it is can only be supported by trillions in spending, its so used to it that any small cut in spending can put this economy even deeper into the hole its already in!!!! Enough of the nonsense talk start cutting right now! Obama Proposes Cutting Deficit By $4 Trillion Over 12 Years Reuters | April 13, 2011 | 02:34 PM EDT President Obama said Wednesday that tackling the U.S. budget deficit would require broad sacrifice and said that he would refuse to renew Bush-era tax breaks for wealthier Americans. "We cannot afford $1 trillion worth of tax cuts for every millionaire and billionaire in our society. And I refuse to renew them again," Obama said in remarks outlining his plan to tackle the country's massive debt problem. Obama's speech called for reducing the U.S. deficit by $4 trillion within 12 years or less. The president warned that steadily rising debt could cost jobs and harm the economy and force the country to borrow more from other countries such as China. "If our creditors start worrying that we may be unable to pay back our debts, it could drive up interest rates for everyone who borrows money â making it harder for businesses to expand and hire, or families to take out a mortgage," he said. But he added: "We can solve this problem." Obama, who has been criticized by both Democrats and Republicans for taking too low a profile in the debate over how to tame long-term debt and deficits, said the budget savings should be achieved through a mix of spending cuts and revenue increases through higher taxes. Here are some highlights of the plan, according to a factsheet distributed by the White House before the speech: Debt Reduction Goal # Obama believes a goal of $4 trillion in deficit reduction over 12 years or less is achievable, and projects that it will reduce deficits as a share of the U.S. economy to about 2.5 percent of GDP in 2015, and put deficits on a path toward close to 2.0 percent of GDP toward the end of the decade. # The plan includes a "debt failsafe" trigger that would require an across the board spending reduction if budget projections by 2014 do not show the debt-to-GDP ratio has stabilized and is declining in the second half of the decade. The trigger would ensure that deficits as a share of the economy average no more than 2.8 percent of GDP in the second half of the decade, the White House said. It would not apply to Social Security, low-income programs, or benefits for Medicare enrollees and would include an unspecified mechanism ensuring it does not exacerbate an economic downturn or interfere with the ability to respond to a national security emergency. Spending Cuts # Obama will suggest cuts in non-security discretionary spending to generate an additional $200 billion in savings over 10 years beyond the $400 billion in savings in the fiscal 2012 budget proposal he offered in February. The White House said that would generate $770 billion in deficit reduction over 12 years. # Obama's debt reduction framework sets a goal of holding the growth in base security spending below inflation, while ensuring the capacity to meet national security responsibilities, which would save $400 billion by 2023, the White House said. Healthcare # In addition to his healthcare overhaul law, Obama is proposing reforms to the government's Medicare and Medicaid insurance programs for the elderly and poor that the White House said would save $340 billion over 10 years and $480 billion by 2023, including proposals already included in Obama's budget. Over the subsequent decade, the president's proposal will save well over $1 trillion, the White House said. Savings From Mandatory Programs # In addition to savings already presented in Obama's budget to such programs as agricultural subsidies and the federal pension insurance system, Obama's plan includes a target of $360 billion in savings from other mandatory programs by 2023, the White House said. Tax Reform # Obama is calling on Congress to undertake comprehensive tax reform that produces a system that is fairer, has fewer loopholes, is less complex and is not rigged in favor of those who can afford lawyers and accountants to game it, the White House said. Social Security # Obama's plan calls for efforts to strengthen the government's Social Security pension system but does not seek to privatize it, although the factsheet offered no specifics. With the U.S. deficit expected to hit $1.65 trillion this year, proposed triggers would force automatic, across-the-board cuts in spending if budget targets are not met by 2014. The aim is to ensure that deficits as a share of the economy average no more than 2.8 percent of gross domestic product in the second half of the decade. Past presidents have put in place similar "triggers". Obama's proposal came a week after Paul Ryan, House of Representatives Budget Committee chairman, offered a blueprint for $4.4 trillion in deficit cuts. Obama wants to draw a sharp contrast with the Ryan plan, which would combine an overhaul of the Medicare health program with lower taxes. Even before he spoke, Republicans sought to gain the upper hand in the debate by underscoring what they said was a serious debt problem and rejecting any notion of higher taxes. "It is time to act," said Senate Republican leader Mitch McConnell. "We don't believe a lack of revenue is part of the problem, so we will not be discussing raising taxes." The deficit issue has become entangled with a vote Congress will consider on raising the nation's borrowing limit. Republicans say they will not vote to lift the limit without commitments to rein in long-term deficits. The debt is expected to hit the $14.3 trillion ceiling as early as mid-May and a failure to lift it could raise the specter of default. Analyst Chris Edwards of the Cato Institute, a think tank that favors limited government, said that his initial impression of Obama's proposal was that "there's not much new" in it other than the deficit triggers. He noted the triggers could force tax increases as well as spending cuts. "That's obviously not going to fly with the Republicans," Edwards said.