Obama Has Plan to Cut Deficit by Two-Thirds by 2013, NYT Says
President Barack Obama will set a goal to cut the annual U.S. budget deficit by almost two-thirds by the end of his term, the New York Times reported, citing unidentified administration officials, dpa reported.
Obama, set to unveil the budget outline on Feb. 26, aims to trim the gap by withdrawing troops from Iraq and with higher taxes for wealthy Americans, the newspaper reported on its Web site. The $1.2 trillion deficit the president inherited for 2009 will rise above $1.5 trillion because of the initial spending under his economic stimulus bill. Ten-year projections in his budget blueprint will show the shortfall shrinking to $533 billion in 2013, the Times said.
Obama's plan would tax the investment income of hedge fund and private equity partners at ordinary tax rates, which are now as high as 35 percent and may rise to 39.6 percent under the administration's plan, instead of at the capital-gains rate of as much as 15 percent, the newspaper reported.
Obama will also propose letting lapse after 2010 the Bush tax cuts on income, dividends and capital gains for people earning more than $250,000 a year, the Times said.