President Barack Obama on Wednesday proposes a federal budget that would spend $3.78 trillion over the coming fiscal year, and raise taxes again on the wealthy to start closing annual deficits.
Normally a day of drama in Washington, the president’s budget proposal this year is something of an afterthought. It comes two months later than usual, follows a Republican budget already adopted by the House of Representatives and a Democratic budget already approved by the Senate, and includes mostly familiar proposals he’s made before without success.
His proposal, outlined in broad brushstrokes by the White House in advance of the late morning release of the full plan, includes $1 billion to open 15 manufacturing innovation institutes; $50 billion for upgrades to roads, bridges and other infrastructure, and money for 100,000 science and math teachers.
One new proposal: he wants to use a new formula that would slow the growth of Social Security benefits, cutting $230 billiuon from projected spending over the next decade.
He also proposes anew to raise taxes by requiring households with incomes over $1 million to pay at least 30 percent of their income in taxes and tax deductions for the top two percent to 28 percent . He called for both in his campaign last year.
Obama says his plan would cut projected deficits by $1.8 trillion over 10 years, reducing it to 2.8 percent of gross domestic product by 2016 and 1.7 percent by 2023, according to the White House.
Republicans say that number is less than half – $600 billion – because the president wants to restore across-the-board spending cuts that took effect in March.
Republicans objected to the call for tax increases and lack of spending cuts.
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