Obama Said to Call for Cuts in Entitlements, Higher Taxes on Wealthy

Tuesday, 12 Apr 2011 03:02 PM

President Barack Obama will call tomorrow for a combination of reductions in entitlement spending and tax increases on higher-income Americans to address long-term fiscal debt while drawing a sharp contrast with the Republican alternative proposed by Representative Paul Ryan, according to a person familiar with the plan.

Obama’s proposal will draw on the findings of the Simpson-Bowles debt commission chairmen who said tax increases had to accompany spending reductions. He will also specifically reject Ryan’s idea of a voucher-like system for future Medicare recipients, the person said.

The president also will try to align his plan with the objectives of the so-called Gang of Six, a group of three Republican and three Democratic senators working on their own recommendations. That plan is not expected to be released until after a two-week congressional recess scheduled to begin next week, according to people familiar with the negotiations.

Obama’s address on federal debt, to be delivered tomorrow afternoon at George Washington University in the capital, comes as he’s preparing for a fight with congressional Republicans over raising the government’s debt limit and trying to set the debate for the 2012 presidential campaign.

While refusing to release details about what the president will say, White House officials have offered hints of the direction he’ll take.

“You can’t simply slash entitlements, lower taxes, and call that a fair deal,â€