John
01-25-2011, 09:39 PM
President Barack Obama will propose a spending freeze to show his determination to join Republicans in tackling the deficit, but it likely will not be enough to avoid a bitter fight over budget cuts.
Obama's address to Congress at 9 p.m. EST (2 a.m. British time on Wednesday) will stress a search for common ground on efforts to boost growth and jobs, shaping a centrist message to carry into his 2012 re-election campaign.
Just hours before the speech, the White House said Obama will reiterate a call for a five-year halt on non-security, discretionary spending increases. A freeze on that type of spending would not apply to the huge entitlement programs -- such as Social Security and Medicare -- at the heart of America's deficit problem.
In fact, discretionary spending, excluding money for security, accounts for just 13 percent of the $3.7 trillion (2.34 trillion pounds) federal budget.
Obama is widely expected to use his lengthy address to highlight his shift to the political centre and to begin the process of winning back disgruntled independent voters who will be central to his chances of re-election in 2012.
The president's trademark soaring rhetoric will likely be on display as he preaches the need for unity to combat economic woes and tries to regain control of the public debate on national spending from opposition Republicans.
Republicans sought to pressure Obama over spending ahead of the speech, seizing on an expected call for investment in targeted areas like education. Republicans say "investment" is just a Democratic code for "borrow and spend" policies.
"I'm hopeful that the president has listened to the American people," House of Representatives Speaker John Boehner said. "I'm hopeful that the word 'investment' really isn't more stimulus spending and a bigger government here in Washington."
Americans have responded positively to better bipartisan cooperation after Obama struck a deal with Republicans over tax cuts, helping lift his approval ratings in recent weeks.
Washington's often harsh tone was also tempered by efforts from both parties towards greater comity after Democratic Representative Gabrielle Giffords was wounded in a mass shooting on January 8. Six people died in the Arizona rampage.
The family of a 9-year-old girl who was among those killed has been invited to attend the address with first lady Michelle Obama, while some lawmakers plan to break the practice of sitting as a bloc with only members of their own party.
But the partisan battles are expected to heat up again.
DEBT LIMIT LOOMS
Americans are worried about a $1.3 trillion budget deficit and rising federal debt, which will hit a statutory limit of $14.3 trillion by March 31.
The two parties differ over how to tackle these problems, with Republicans in favour of deep spending cuts and many Democrats preferring to increase taxes on wealthier Americans.
Obama is under pressure to spell out his plans.
With an unemployment rate of 9.4 percent and 14.5 million Americans counted as out of work, the White House wants to ensure any cuts in federal spending do not undermine the country's gradual economic recovery.
Senior Obama adviser Valerie Jarrett said the president hopes to use the speech to convince Americans of his commitment to deficit reduction. But she said Obama also would emphasise "strategic, targeted spending that's smart" to address the more immediate priority of bolstering economic growth.
"The message that's so important is that we do have to tighten our belts," Jarrett said in an interview on ABC's "Good Morning America" program.
Seizing on the talk of targeted spending, Boehner said: "The American people know that we can't continue to borrow and spend our way to prosperity."
Eric Cantor, the No. 2 Republican in the House, said his party would outline proposed cuts the week of February 14, a time when Congress is usually focussed on the president's budget proposal.
"This is how serious we are on delivering on our commitment to cut spending," Cantor told reporters.
Republicans, who won control of the U.S. House of Representatives in the November congressional elections after campaigning for less government spending, have called for $100 billion in federal cuts.
Financial markets will watch for anything Obama says about raising the debt limit, a move that has been resisted by some Republicans but which investors see as essential for the country to avoid defaulting on its debt.
But the president is expected to emphasise broader themes, like the importance of focussing on education, innovation and infrastructure while holding down non-defence spending. However, officials said he will put forward a Pentagon plan to cut $78 billion in defence spending over five years. Further details will be in his budget next month.
Source - Yahoo.
Obama's address to Congress at 9 p.m. EST (2 a.m. British time on Wednesday) will stress a search for common ground on efforts to boost growth and jobs, shaping a centrist message to carry into his 2012 re-election campaign.
Just hours before the speech, the White House said Obama will reiterate a call for a five-year halt on non-security, discretionary spending increases. A freeze on that type of spending would not apply to the huge entitlement programs -- such as Social Security and Medicare -- at the heart of America's deficit problem.
In fact, discretionary spending, excluding money for security, accounts for just 13 percent of the $3.7 trillion (2.34 trillion pounds) federal budget.
Obama is widely expected to use his lengthy address to highlight his shift to the political centre and to begin the process of winning back disgruntled independent voters who will be central to his chances of re-election in 2012.
The president's trademark soaring rhetoric will likely be on display as he preaches the need for unity to combat economic woes and tries to regain control of the public debate on national spending from opposition Republicans.
Republicans sought to pressure Obama over spending ahead of the speech, seizing on an expected call for investment in targeted areas like education. Republicans say "investment" is just a Democratic code for "borrow and spend" policies.
"I'm hopeful that the president has listened to the American people," House of Representatives Speaker John Boehner said. "I'm hopeful that the word 'investment' really isn't more stimulus spending and a bigger government here in Washington."
Americans have responded positively to better bipartisan cooperation after Obama struck a deal with Republicans over tax cuts, helping lift his approval ratings in recent weeks.
Washington's often harsh tone was also tempered by efforts from both parties towards greater comity after Democratic Representative Gabrielle Giffords was wounded in a mass shooting on January 8. Six people died in the Arizona rampage.
The family of a 9-year-old girl who was among those killed has been invited to attend the address with first lady Michelle Obama, while some lawmakers plan to break the practice of sitting as a bloc with only members of their own party.
But the partisan battles are expected to heat up again.
DEBT LIMIT LOOMS
Americans are worried about a $1.3 trillion budget deficit and rising federal debt, which will hit a statutory limit of $14.3 trillion by March 31.
The two parties differ over how to tackle these problems, with Republicans in favour of deep spending cuts and many Democrats preferring to increase taxes on wealthier Americans.
Obama is under pressure to spell out his plans.
With an unemployment rate of 9.4 percent and 14.5 million Americans counted as out of work, the White House wants to ensure any cuts in federal spending do not undermine the country's gradual economic recovery.
Senior Obama adviser Valerie Jarrett said the president hopes to use the speech to convince Americans of his commitment to deficit reduction. But she said Obama also would emphasise "strategic, targeted spending that's smart" to address the more immediate priority of bolstering economic growth.
"The message that's so important is that we do have to tighten our belts," Jarrett said in an interview on ABC's "Good Morning America" program.
Seizing on the talk of targeted spending, Boehner said: "The American people know that we can't continue to borrow and spend our way to prosperity."
Eric Cantor, the No. 2 Republican in the House, said his party would outline proposed cuts the week of February 14, a time when Congress is usually focussed on the president's budget proposal.
"This is how serious we are on delivering on our commitment to cut spending," Cantor told reporters.
Republicans, who won control of the U.S. House of Representatives in the November congressional elections after campaigning for less government spending, have called for $100 billion in federal cuts.
Financial markets will watch for anything Obama says about raising the debt limit, a move that has been resisted by some Republicans but which investors see as essential for the country to avoid defaulting on its debt.
But the president is expected to emphasise broader themes, like the importance of focussing on education, innovation and infrastructure while holding down non-defence spending. However, officials said he will put forward a Pentagon plan to cut $78 billion in defence spending over five years. Further details will be in his budget next month.
Source - Yahoo.