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Brendan Hoffman/Getty Images
Brendan Hoffman/Getty Images
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Congress Charts New Course Over Deficit

WASHINGTON (AP) — The nation's sharp disagreements over taxes and spending are on a re-routed collision course, as Senate Democrats launch a plan that includes new taxes and House Republicans vow to speed up their plan to balance the federal budget with spending cuts alone

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Bush Tax Cut Debate Dooms Deal To Cut Deficit

WASHINGTON (AP) — A long-running war between Democrats and Republicans over Bush-era tax cuts doomed the debt supercommittee's chances of reaching a deal. Efforts to overhaul the tax code may await the same fate as both parties gear up to make taxes a central issue in 2012 elections

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Chip Somodevilla, Getty Images
Chip Somodevilla, Getty Images
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President Obama Reveals $3 Trillion Plan to Cut the Deficit [VIDEO]

In a speech given from the White House Rose Garden on Monday, President Obama proposed a $3 trillion plan to cut the deficit, with half of that amount covered by increased taxes on the wealthy and another $800 million financed by letting the Bush-era tax cuts expire.

“If we are going to make spending cuts… then it is only right we ask everyone to pay their fair share … We can’t afford these special lower rates for the wealthy. We can’t afford them when we are running these big deficits,” he said.

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