Washington D.C. Yesterday President Obama unveiled his $3.8 trillion 2013 proposed budget which begins on Oct. 1.
Some of the key budget proposals include spending to boost growth on infrastructure projects and increased taxes on the wealthy.
In an election season that is expected to result in heated exchanges between President Obama and Republicans, it will be challenging for Obama’s key budget proposals to get past the Republican controlled Congress.
Republican presidential candidate Mitt Romney referred to the Obama’s proposed budget as “an insult to the American taxpayer.”
Obama told his audience that his new budget had the right balance to provide near term assistance for the U.S. economy while also laying the framework for a longer term plan to contain the government’s escalating budget deficits.
“At a time when our economy is growing and creating jobs at a faster clip, we’ve got to do everything in our power to keep this recovery on track,” Obama said.
He later spoke about the choices that Americans face. ” We can settle for a country where people do really really well and everyone else struggles to get by or we can restore an economy where everyone gets a fair share, everyone does their fair share, everyone plays by the same set of rules from Washington to Wall St. to Main Street.”
Some of the key areas of Obama’s new budget includes:
- $800 billion for job creation and infrastructure spending, including billions of dollars for roads, railways and schools.
- Implement the Buffett Rule, a 30% flat tax on households exceeding $ 1 million
- Repeal the Bush Tax Cuts for the wealthy (families making over $250,00) while limiting deductions on mortgage interest
- Tax Dividend Income over $250,00 as ordinary income. Although the current top income tax rate is 35 percent, the wealthiest Americans tend to pay lower tax rates because dividends and capital gains on their investments are taxed at a lower rate than ordinary income.
- End oil subsidies
- Reduce the deficit by $4 trillion over the next decade ( a moot point since the deficit plan was agreed upon last year, following the agreement Congress approved in August for spending caps to achieve $900 billion in deficit reduction over a decade.)
- The budget would cut more than $360 billion from Medicare, Medicaid and other health programs over a decade.