President Obama unveiled a $3 trillion federal budget Deficit Reduction Plan on September 19, 2011 including $1.5 trillion in tax increases. The President’s Deficit Reduction Plan (“Living Within Our Means and Investing in the Future:
President Obama has challenged Congress to immediately pass the American Jobs Act of 2011 – a $447 billion jobs package, including payroll tax cuts and tax credits to encourage hiring, along with extended 100 percent bonus depreciation, which would be paid for by limiting deductions for higher income taxpayers and changing the taxation of carried interest.
On August 2, President Obama quickly signed the Budget Control Act (Sen. 365 as amended) after passage by the Senate 74 to 26. The House had passed the Budget Control Act on August 1 by a vote of 269 to 161. The new law raises the debt limit to avoid a projected August 2 default and creates a bipartisan joint select committee on deficit reduction.