Washington Report: Obama Lays Out Budget Vision That Calls for Shared Responsibility

President Obama laid down the gauntlet in the 2012 budget battle

being waged by Democrats and Republicans.

During a speech delivered on the campus of George Washington University on April 13, the president repeatedly pointed to the fundamental unfairness of trying to rebuild the economy on the backs of the poor. He noted that congressional Republicans and potential presidential candidates have embraced the “worthy goal” of reducing the deficit by $4 trillion over the next ten years and to addressing the ballooning costs of Medicare and Medicaid; but their plan to do so would prevent the nation from making the kinds of investments in education, infrastructure and other areas that he believes are the keys to preserving the nation’s economic well-being and global competitiveness.

“A 70% cut to clean energy. A 25% cut in education. A 30% cut in transportation. Cuts in

college Pell Grants that will grow to more than $1,000 per year. That’s what they’re proposing,” Obama said. “These aren’t the kind of cuts you make when you’re trying to get rid of some waste or find extra savings in the budget. These aren’t the kind of cuts that Republicans and Democrats on the Fiscal Commission proposed. These are the kind of cuts that tell us we can’t afford the America we believe in. And they paint a vision of our future that’s deeply pessimistic.”

Obama said that he was offering a “more balanced approach” that would build on the spending reductions in the continuing resolution that he signed into law last week that will save $750 billion over 12 years. It includes some painful choices, he warned, but doesn’t sacrifice “the core investments we need to grow and create jobs” in such areas as medical research, clean energy technology, infrastructure and education and job training. He also expressed a

determination to preserve the Affordable Care Act because it reduces the deficit by reducing the cost of health care itself, and vehement opposition to the GOP’s proposals that would turn Medicare into a voucher program and block grant Medicaid.

“Let me be absolutely clear. I will preserve these health care programs as a promise we make to each other in this society. I will not allow Medicare to become a voucher program that leaves seniors at the mercy of the insurance industry, with a shrinking benefit to pay for rising costs,” the president said. “I will not tell families with children who have disabilities that they have to fend for themselves. We will reform these programs, but we will not abandon the fundamental commitment this country has kept for generations.”

The president also said that he agreed to extend the Bush-era tax cuts for the wealthiest Americans solely to prevent a tax hike on the middle class.

“But we cannot

afford $1 trillion worth of tax cuts for every millionaire and billionaire in our society. And I refuse to renew them again,” he said. “I don’t need another tax cut. Warren Buffett doesn’t need another tax cut. Not if we have to pay for it by making seniors pay more for Medicare. Or by cutting kids from Head Start. Or by taking away college scholarships that I wouldn’t be here without,” the president said.

Earlier in the day, Obama hosted a group of Republican lawmakers at the White House to preview his speech. Later that day, a visibly upset group of GOP leaders criticized the speech as being more political than solution-oriented and that they felt blindsided while sitting in the front row at the event.

“I’m very disappointed in the president. I was excited when we got invited to attend his speech today,” said House Budget Committee chairman Paul Ryan (R-Wisconsin), who is the primary author of his chamber’s 2012 budget proposal. “I thought the president’s invitation to Mr. Camp, Mr. Hensarling and myself was an olive branch. Instead, what we got was a speech that was excessively partisan, dramatically inaccurate and hopelessly inadequate to addressing our country’s pressing fiscal challenges.”

Obama, in his remarks, predicted such criticisms and acknowledged his “strong criticism” of the Ryan budget proposal. But he also said he’s eager to hear other plans from a variety of fronts, but in the end, the solution must include shared responsibility.

“This larger debate we’re having, about the size and role of government has been with us since our founding days. And during moments of great challenge and change, like the one we’re living through now, the debate gets sharper and more vigorous,” the president said. “That’s a good thing. As a country that prizes both our individual freedom and our obligations to one another, this is one of the most important debates we can have.”