Republicans and Democrats spar over entitlement cuts

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The U.S. Senate's vote rejecting Republicans' proposed 2012 budget — and all of its provisions to drastically overhaul Medicare and Medicaid — means both sides are back to debating how to best balance the federal budget.

House Majority Leader Eric Cantor (R-VA) offered a plan Thursday featuring a 25% top tax rate on corporations and individuals, compared to the 35% currently in place. He has also called for more domestic energy production and more government regulation of U.S. patent and visa systems, according to The Wall Street Journal. Meanwhile, President Obama revealed 30 plans to hold down federal regulation on American companies in order to save billions of dollars in costs.

But no one is taking Medicare or Medicaid off the table just yet. While privatization and cuts to Medicare remain unpopular, the Senate vote of 57-40 found only five Republicans voting against the proposed budget.

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