The U.S. President Barack Obama offered to stop the tax break amounting to 72 billion U.S. dollars under the framework of the federal budget deficit narrowing. In accord to Bloomberg, in the nearest time Obama will discuss this option with the representatives of the Democrats and the Republicans.
On February 14, Obama forwarded to the Congress the budget blueprint for the 2012 financial year (starting since October 1, 2011), which comprises the plan for reduction of the governmental expenses by 1.1 trillion within ten years. Administration officials consider that this can be attained by lowering the internal expenditures, as well as by increasing the taxes for the rich Americans (whose year income equals over 500, 000 U.S. dollars). Moreover, certain tax incentives can be taken away from some U.S. oil companies.
The Democrats and the Republicans have not come to an agreement as to the Presidential plan of the expenditures’ reduction. Thus, the representatives of the Republican Party are not supporting the cancellation of the tax break and the enhancement of the tax rates.
In addition to the budget deficit narrowing (for the last two years it amounted to 2.8 trillion U.S. dollars), the USA is to decide on upturning the limit of the accepted public debt size. In march the US public debt exceeded the regulation limit of 14.28 trillion U.S. dollars, thereafter the agencies Fitch and Moody's hinted on downgrading the credit rating of the country.
