Obama Freezes Federal Salaries For Next 2 Years

Washington - Now that the Thanksgiving holidays are over, it's time to get back to work, according the the President.

Saying if there was one message received loud and clear this month from voters, it was “one single focus – making sure their work is rewarded,” President Barack Obama laid out a largely symbolic cost reduction program in his budget proposals.

The new austerity measure is considered symbolic because it is aimed at a $1.4 trillion deficit.

To start with, all federal workers' salaries will be frozen at present levels for the next two years.

The salary freeze will not affect members of the Armed Forces, but will apply to civilian Department of Defense workers and all other federal employees.

The President explained that he froze political the salaries of political appointees the day he took office. The President's annual salary of $400,000 has been fixed since January, 2001.

The cost-cutting measure will save taxpayers an estimated $20 billion over the coming budget period, $28 billion over the next 5 years and $60 billion over the next 10 years, according to the President.

The bi-partisan debt commission will release its report later this week. According to a co-chairman, the proposals will include cuts to Social Security benefits, higher taxes for millions of Americans and an end to the mortgage interest and child tax credit deductions presently allowed on income tax returns.

In all, 120 programs will come under the knife, including $50 billion
in improper payments, the sale of non-essential lands owned by the federal government and a continuation of the freeze on Congressmen and Senators' $170,000 per year salaries. Lawmakers have eschewed an automatic $1,600 a year increase to their salaries on their own behalf.

These are part of the “tough decisions that this town has put off for a long time,” the President said.

At the end of his announcement, the President took no questions from media representatives.