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Monday, July 25, 2011

Obama still pushing for tax hikes...

The White House says President Barack Obama will address the nation at 9 p.m. Monday to discuss the approaching debt limit deadline and an apparent political stalemate over deficit reduction proposals.

White House spokesman Jay Carney announced the address after House Republican and Senate Democratic leaders unveiled competing plans to meet an Aug. 2 deadline to raise the government's borrowing authority.

Obama is supporting a proposal by Senate Majority Leader Harry Reid that would trim $2.7 trillion of government spending over 10 years.

Reid's plan does not include new tax revenue, as Obama has demanded. But unlike the GOP plan, it would extend the debt ceiling into 2013 - an Obama ultimatum. The House plan trims about $1.2 tillion but would only extend the debt ceiling for less than a year.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

President Barack Obama is reiterating his call for a deficit-cutting plan that cuts spending and that also increases tax revenue by making the wealthy and corporations pay more to help stabilize the long-term debt.

The president made his comments to the National Council of La Raza on Monday as congressional leaders struggled against time to come up with a plan to meet an Aug. 2 deadline to raise the nation's debt ceiling.

Obama said the wealthy and big corporations have to "pay their fair share, too." And he alluded to the difficulty of cutting a deal, saying "compromise is becoming a dirty word."