President releases deficit reduction plan, LIFO included

This morning President Obama released a proposal for $3 Trillion in deficit reduction, which includes $1.5 Trillion in tax increases. This proposal marks President Obama's first entree to the Congressional Joint Select Committee ("Super Committee"). Included in President Obama's proposal is the repeal of LIFO, which the Obama Administration estimates will raise nearly $60 Billion.

Other proposals in President Obama's plan include:

• Allowing the "Bush tax-cuts" for the top tax bracket to expire.
• Limiting charitable deductions for individuals in the top tax bracket.
• Saving $1 Trillion, by winding down U.S. involvement in Iraq and Afghanistan.
• Cutting $248 Billion from Medicare and $72 Billion from Medicaid.

Additionally, President Obama has stated that he will veto any plan for entitlement reform that does not include tax increases. Congressional Republicans have stated that they will not pass tax increases, but would like to pass a complete overhaul of both the corporate and personal tax code.