President Barack Obama who has been criticized by both Democrats and Republicans for taking too low a profile in the debate over how to tame long-term debt and deficits, said the budget savings should be achieved through a mix of spending cuts and revenue increases through higher taxes.
According to congressional sources, Obama will propose:
* Reducing the deficit by $4 trillion in 12 years or less
* Curbing deficits to 2.5 percent of GDP in 2015, 2 percent toward the end of the decade
* Ending Bush-era tax rates for the wealthiest Americans
* Seeking $770 billion in savings by 2023 in cuts to non-security discretionary spending
* Saving $480 billion in Medicare and Medicaid by 2023 and at least $1 trillion more by 2033.
The debt is expected to hit the $14.3 trillion ceiling as early as mid-May and a failure to lift it could raise the specter of default and ripple through financial markets.