Politics
Obama sends budget to congress
The Obama budget sticks to the caps on annual appropriations approved in August that will save US$1 trillion over the next decade. It also puts forward US$1.5 trillion in new taxes, primarily by allowing the Bush-era tax cuts to expire at the end of this year for families making US$250,000 or more per year.
Obama, as he has in the past, also proposed eliminating tax deductions the wealthy receive and would also put in place a rule named for billionaire Warren Buffett that would seek to make sure that households making more than US$1 million annually pay at least 30 percent of their income in taxes.
Obama would also impose a new US$61 billion tax over 10 years on big banks aimed at recovering the costs of the financial bailout and providing money to help homeowners facing foreclosure on their homes. It would raise US$41 billion over 10 years by eliminating tax breaks for oil, gas and coal companies and claims significant savings from ending the wars in Iraq and Afghanistan.
Lew said the budget would cut spending by US$2.50 for every US$1 in extra taxes it seeks.
Among the areas targeted for increases, Obama is proposing US$476 billion in increased spending on transportation projects including efforts to expand inner-city rail services.
To spur job creation in the short-term, Obama is proposing a US$50 billion “upfront” investment for transportation, US$30 billion to modernize at least 35,000 schools and US$30 billion to help states hire teachers and police, rescue and fire department workers. Republicans in Congress, opposed to further stimulus spending, have blocked these proposals in the past.
The Obama budget seeks US$360 billion in savings in Medicare and Medicaid mainly through reduced payments to health care providers, avoiding tougher measures advocated by House Republicans and the deficit commissions that said it was critical to restrain health care costs.
Copyright 2012 The Associated Press.
