Obama calls for $3 trillion in deficit cuts

President Barack Obama will today call for new deficit cuts of $3.0 trillion but warn Republicans he will veto any bill that trims healthcare for the elderly without hiking taxes on the rich.

President Barack Obama will on Monday call for new deficit cuts of $3.0 trillion but warn Republicans he will veto any bill that trims healthcare for the elderly without hiking taxes on the rich.

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Obama will lay out a series of proposals that include a broad overhaul of the tax code designed to raise $1.5 trillion dollars, mostly by letting previous tax cuts for the wealthy expire and by closing corporate loopholes.

Officials said the plan would ensure America's long term fiscal future at a time of deep economic gloom, and permit continued investment in education, new generation energy and job creation.

Specifically, Obama will lay out a plan for tax revenue raises and spending cuts which he will suggest a congressional supercommittee charged with coming up with up to $1.5 trillion dollars in spending cuts should adopt.

Obama's proposals will bring total deficit cutting plans over the next decade to $4.4 trillion, officials said.

That topline figure includes $1.2 trillion in cuts in federal discretionary spending already agreed by Obama in August as part of a compromise which ended a standoff with Republicans over raising the federal debt ceiling.

It includes 580 billion in spending cuts across all mandatory spending programs and $1.1 trillion of savings realized from drawing down US troop numbers in Afghanistan and Iraq.

Tax reform would result in 1.5 trillion dollars in savings, and a further 430 billion dollars will be found in additional interest savings elsewhere.