President Barack Obama releases his long-awaited budget proposal, aiming to reduce, but not eliminate, deficits.
Among the highlights
— Employs a Republican proposal to use the so-called “chained CPI” to hold down inflation-adjusted increases in Social Security payments.
— Increases some Medicare costs for well-off retirees.
— Hikes federal cigarette taxes to pay for pre-school for low- and moderate-income children.
— Caps income tax deductions for high earners.
— Makes new allocations for transportation projects and jobs initiatives.
— Replaces the sequester cuts with what the White House says are more sensible reductions.
— Proposes savings by cutting farm subsidies.
— Proposes savings through ending or shrinking certain weapons programs, shaving health care benefits and reducing military construction. It also would slow the pace of military pay raises.
— Increases spending for clean energy.
— Proposes broad budget cuts for the Homeland Security Department to be spread over several agencies, including the Secret Service and the Coast Guard.
Competing priorities
Obama:
“My budget will reduce our deficits by nearly another $2 trillion, so that all told we will have surpassed the goal of $4 trillion in deficit reduction that independent economists believe we need to stabilize our finances. But it does so in a balanced and responsible way, a way that most Americans prefer.”
House Speaker John Boehner:
“House Republicans passed a balanced budget that will help foster a healthier economy and to help create jobs. Unfortunately, the president’s budget never comes to balance. Every family has to balance its budget, Washington should as well.”
