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Obama Deficit Plan Sets Stage for Capitol Hill Budget Debate

Calling for a reduction in federal deficits of $4 trillion over 12 years, U.S. President Barack Obama outlined his position in the looming Capitol Hill budget debate in a speech delivered yesterday (Wednesday) at George Washington University.

Although thin on specifics, some key elements of President Obama's deficit plan include eliminating the President Bush-era tax cuts for people making over $250,000 a year, reducing defense spending by $400 billion, and trimming Medicare and Medicaid costs by $480 billion by building on provisions in last year's healthcare reform package.

The president projects $1 trillion in savings from revenue increases, $1 trillion in savings on interest payments and $2 trillion from spending cuts.

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