20 Sep 2011

Obama unveils plan to cut US debt

8:07 am on 20 September 2011

US President Barack Obama has outlined his plan for cutting America's huge budget deficit, saying corporations and the wealthiest citizens must pay higher taxes.

Speaking at the White House, Mr Obama unveiled a plan to save more than $US3 trillion over a decade that would pay for his plan to boost jobs, with roughly half coming from tax increases, the BBC reports.

Among the plans are proposals to cut some $US250 billion of spending on Medicare, the healthcare programme for the elderly.

However the president promised he would veto any bill eventually passed by Congress that cut healthcare but did not include new taxes on the rich.

Mr Obama said it was wrong that someone earning only $50,000 a year should pay the same rate of tax as a person who earned $50 million.

Republican opponents have described the plan as class warfare and say they will oppose any tax increases.