ADVANCE FOR TUESDAY, JAN. 29 AND THEREAFTER - This photo taken Jan. 18, 2013 shows part-time home health care provider Debra Walker in her home in Houston. President Barack Obama thinks his health care law makes states an offer they can't refuse. Whether to expand Medicaid _the federal-state program for the poor and disabled_ could be the most important decision facing governors and legislatures this year. The repercussions go beyond their budgets, directly affecting the well-being of residents and the finances of critical hospitals. Awaiting decisions are people like Walker, a part-time home health care provider. She had a good job with health insurance until she got laid off in 2007. (AP Photo/Pat Sullivan)
Obama doesn't budge on his offer of cuts, taxes
Published: 02:20:09 AM, Wed 13 February 2013 UTC
WASHINGTON (AP) — President Barack Obama is telling congressional Republicans that he is still willing to reduce the deficit but only with a mix of increased taxes and reduced spending, an offer he made during budget talks that collapsed at the end of last year. Republicans say they reject raising more tax revenue.
In his State of the Union speech Tuesday night, Obama is reiterating his proposal to reduce spending by $900 billion and increase taxes by $600 billion through a tax overhaul. The combined $1.5 trillion in deficit reduction would also reduce government payments on the debt. Obama intends to use some of those savings to pay for initiatives meant to create jobs.
The $900 billion in cuts include reductions of $400 billion in spending on Medicare and other health care programs.
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