Obama says ending tax breaks required to cut deficit

http://news.yahoo.com/obama-ending-tax-breaks-required-cut-deficit-103420710.html;_ylt=Avwr9uxKDw6bvAJ3QRWAKNes0NUE;_ylu=X3oDMTNwYnE4aGZwBGNjb2RlA3dlaWdodGVkY3QEcGtnAzczYmU3ZGNiLTQ5NDQtMzc3My05NTg2LTJiNjM1ODI3NzJlOQRwb3MDMgRzZWMDbW9zdF9wb3B1bGFyBHZlcgNjNjJlYzk3MC1hNGQxLTExZTAtYmYwZi0zNjdkNDk4NTAzMTY-;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

Sat, Jul 2, 2011

WASHINGTON (Reuters) - President Barack Obama pressed his case on Saturday for achieving deficit reduction, in part by ending tax breaks and singling out hedge fund managers, oil companies and billionaires to take the hit.

Obama is locked in a dispute with Republicans over how to bring down the deficit as part of a deal to raise the debt ceiling and prevent Washington from default.
Democrats insist that some tax increases be included in a deficit-cutting package.

Republicans say that would be bad for the economy.

"Now, it would be nice if we could keep every tax break, but we can't afford them," Obama said in his weekly radio and Internet address.

"Because if we choose to keep those tax breaks for millionaires and billionaires, or for hedge fund managers and corporate jet owners, or for oil and gas companies pulling in huge profits without our help - then we'll have to make even deeper cuts somewhere else."

Obama listed a range of areas, some of which are considered top Democratic political priorities, that would face the chopping block if such tax breaks were allowed to continue.

"We've got to say to a student, 'You don't get a college scholarship.' We have to say to a medical researcher, 'You can't do that cancer research.' We might have to tell seniors, 'You have to pay more for Medicare,'" he said.

"That isn't right, and it isn't smart. We've got to cut the deficit, but we can do that while making investments in education, research and technology that actually create jobs."

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