Obama Sends Congress $4.1T Budget Plan 02/09 10:32
President Barack Obama sent Congress on Tuesday his eighth and final budget,
proposing to spend a record $4.1 trillion on a number of initiatives. They
include launching a new war on cancer, combating global warming and fighting
growing threats from ISIS terrorists.
WASHINGTON (AP) -- President Barack Obama sent Congress on Tuesday his
eighth and final budget, proposing to spend a record $4.1 trillion on a number
of initiatives. They include launching a new war on cancer, combating global
warming and fighting growing threats from ISIS terrorists.
The new spending plan, for the budget year that begins Oct. 1 --- just 3
months before he leaves office --- is facing heavy fire from Republicans who
hope to capture the White House. The proposal had dim prospects of winning
approval in a Republican-controlled Congress.
In all, Obama's budget would increase taxes by $2.6 trillion over the coming
decade, nearly double the $1.4 trillion in new taxes Obama sought and failed to
achieve in last year's budget.
GOP lawmakers said Obama's proposal to impose a $10 per barrel tax on crude
oil to bring in an additional $319 billion over the next decade had no chance
of winning approval in Congress. Obama's budget would use that extra money to
fund billions of dollars in alternative transportation programs as part of the
president's efforts to deal with global warming.
"President Obama will leave office having never proposed a budget that
balances-ever. This isn't even a budget so much as it is a progressive manual
for growing the federal government at the expense of hardworking Americans,"
said House Speaker Paul Ryan. "The president's oil tax alone would raise the
average cost of gasoline by 24 cents per gallon, while hurting jobs and a major
sector of our economy. Americans deserve better."
Ryan, R-Wisconsin, pledged that House Republicans would produce a budget
that does reach balance in coming weeks.
Even with the increased taxes, Obama's budget projects sharply higher
deficits in coming years, totaling $9.8 trillion over the next decade. Just
last summer, Obama's baseline forecast a deficit of $8 trillion over the next
Much of the problem stems from the surge in spending on the government's big
benefit programs of Social Security and Medicare, which are forecast to soar
with the retirement of millions of baby boomers.
The budget sees the economy growing at a 2.6 percent rate this year, though
administration officials noted that projection was finalized in November, prior
to the recent stock market slide. Inflation would remain low, registering a 1.5
percent gain this year.