In a major policy speech, President Barack Obama today outlined a deficit reduction framework that would reduce federal deficits by $4 trillion over the next 12 years. As part of a plan calling for spending cuts and entitlement savings, President Obama also renewed his support for allowing Bush-era tax rates to expire at the end of 2012 for higher-income individuals and called on Congress to undertake comprehensive tax reform. Specifically, the President stated that he supports a "balanced approach" to reducing the federal deficit, with "three dollars of spending cuts and interest savings for every one dollar from tax reform that contributes to deficit reduction."
President Obama called on Congressional leaders to appoint members of the House and Senate who would participate in bipartisan negotiations led by Vice President Joe Biden beginning in early May. The President stated that the goal of these negotiations would be to agree on a legislative plan for comprehensive deficit reduction.