And yesterday I held a fiscal summit where I pledged to cut the deficit in half by the end of my first term in office. My administration has also begun to go line by line through the Federal budget in order to eliminate wasteful and ineffective programs. As you can imagine, this is a process that will take some time. But we have already identified $2 trillion in savings over the next decade.
In this budget, we will end education programs that don't work and end direct payments to large agribusiness that don't need them. We'll eliminate the no-bid contracts that have wasted billions in Iraq and reform our defense budget so that we're not paying for cold war-era weapons systems we don't use. We will root out the waste and fraud and abuse in our Medicare program that doesn't make our seniors any healthier. We will restore a sense of fairness and balance to our Tax Code by finally ending the tax breaks for corporations that ship our jobs overseas.
In order to save our children from a future of debt, we will also end the tax breaks for the wealthiest 2 percent of Americans. Now, let me be clear--let me be absolutely clear, because I know you'll end up hearing some of the same claims that rolling back these tax breaks means a massive tax increase on the American people: If your family earns less than $250,000 a year, a quarter million dollars a year, you will not see your taxes increased a single dime. I repeat: Not one single dime. In fact--not a dime--in fact, the recovery plan provides a tax cut--that's right, a tax cut--for 95 percent of working families. And by the way, these checks are on the way.
Now, to preserve our long-term fiscal health, we must also address the growing costs in Medicare and Social Security. Comprehensive health care reform is the best way to strengthen Medicare for years to come. And we must also begin a conversation on how to do the same for Social Security, while creating tax-free universal savings accounts for all Americans.
Finally, because we're also suffering from a deficit of trust, I am committed to restoring a sense of honesty and accountability to our budget. That is why this budget looks ahead 10 years and accounts for spending that was left out under the old rules. And for the first time, that includes the full cost of fighting in Iraq and Afghanistan. For 7 years, we have been a nation at war. No longer will we hide its price.
Along with our outstanding national security team, I'm now carefully reviewing our policies in both wars, and I will soon announce a way forward in Iraq that leaves Iraq to its people and responsibly ends this war.
And with our friends and allies, we will forge a new and comprehensive strategy for Afghanistan and Pakistan to defeat Al Qaida and combat extremism, because I will not allow terrorists to plot against the American people from safe havens halfway around the world. We will not allow it.
As we meet here tonight, our men and women in uniform stand watch abroad and more are readying to deploy. To each and every one of them and to the families who bear the quiet burden of their absence, Americans are united in sending one message: We honor your service; we are inspired by your sacrifice; and you have our unyielding support.
To relieve the strain on our forces, my budget increases the number of our soldiers and marines. And to keep our sacred trust with those who serve, we will raise their pay and give our veterans the expanded health care and benefits that they have earned.
To overcome extremism, we must also be vigilant in upholding the values our troops defend, because there is no force in the world more powerful than the example of America. And that is why I have ordered the closing of the detention center at Guantanamo Bay and will seek swift and certain justice for captured terrorists. Because living our values doesn't make us weaker, it makes us safer and it makes us stronger. And that is why I can stand here tonight and say without exception or equivocation that the United States of America does not torture. We can make that commitment here tonight.