President Obama’s pretty much made it clear that he has no interest in getting the federal budget in order. Here are a few highlights of his massive, bloated budget proposal.
President Obama’s fiscal 2013 budget proposal touts the administration’s recent long-shot mortgage refinancing proposal and says the White House’s increased emphasis on the housing crisis will lead to larger taxpayer losses from a 2008 emergency bailout fund.
The budget, as expected includes a call for broadening the availability of refinancing options for borrowers who are current on their mortgages but owe more than their homes are worth. The administration said it plans to finish doling out unspent funds for housing assistance, which is likely to increase the costs of the emergency financial bailout by $20 billion — something that is likely to generate criticism from Republicans for increasing taxpayer costs.
The White House announced plans on Monday to help “Arab Spring” countries swept by revolutions with more than $800 million in economic aid, while maintaining U.S. military aid to Egypt.
In his annual budget message to Congress, President Barack Obama asked that military aid to Egypt be kept at the level of recent years — $1.3 billion — despite a crisis triggered by an Egyptian probe targeting American democracy activists.
President Obama unveiled a $3.8 trillion spending plan on Monday for 2013 and a 10-year vision that seeks to cut $4 trillion from the overall deficit, but does little to restrain growth in the U.S. government’s huge entitlement programs and adds $6.6 trillion in deficits over 10 years.
In his 10-year projection, the annual deficit falls below $600 billion just once — in 2018. The $6.6 trillion is added on top of the president’s recent additions to the federal debt — the $15.36 trillion national debt is now greater than the annual gross domestic product.
In the election-year budget proposal, the White House also called for higher taxes on the oil and gas industry, fund managers and estates while allowing Bush-era tax cuts for the wealthy to expire. The tax proposals are part of Mr. Obama’s broader budget plan, which outlines his re-election-campaign message and indicates the White House strategy for another fiscal clash looming after the November elections.
Seeing that his Chief of Staff spent the weekend lying about the Senate process for passing a budget, assume that this is nothing more than a political stunt. As the Wall Street Journal pointed out, his proposed budget is more of a political weapon for him to use against Republicans.
President Barack Obama used his $3.8 trillion fiscal 2013 budget proposal to attack Republican policies, a dramatic shift from previous White House budget plans that underscores the high political stakes of this election year.
Mr. Obama’s proposal projects a budget deficit of $1.33 trillion for the fiscal year beginning Oct. 1, equivalent to 8.5% of gross domestic product, a measure of all economic output. That would mark the fourth straight year of deficits exceeding $1 trillion. The plan focuses on tax increases for the wealthy and more spending on infrastructure, education and manufacturing.
“Unfortunately, Republicans in Congress blocked both our deficit reduction measures and almost every part of the American Jobs Act for the simple reason that they were unwilling to ask the wealthiest Americans to pay their fair share,” Mr. Obama said in the opening message for his budget proposal, referring to a plan he released in September that was aimed at cutting taxes while boosting job growth.
But he swears it’s not about class warfare.
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