President Barack Obama is proposing a $3.77 trillion U.S. government budget for 2014 that he says is “a fiscally responsible blueprint for middle class jobs and growth.”
Speaking at the White House, Obama said the budget would adjust how Social Security benefits are calculated and change taxes for corporations and the wealthy.
“But if we’re serious about deficit reduction, then these reforms have to go hand-in-hand with reforming our tax code to make it more simple and more fair so that the wealthiest individuals and biggest corporations cannot keep taking advantage of loopholes and deductions that most Americans do not get,” the president said. “That is the bottom line.”
The proposal fails to satisfy members of both parties, with Obama admitting that parts of his budget were not “optimal” but rather a “compromise.”
The budget plan intends to reduce the deficit by nearly $2 trillion during the next decade, through a combination of new revenues and budget cuts. It includes a minimum 30 percent tax on people making $1 million or more a year.
Competing budget plans have been passed by the Republican-controlled House of Representatives and the Democratic-controlled Senate, setting the stage for contentious negotiations.
Republicans are opposed to raising more government revenue, after a deal with Democrats earlier this year that increased income-tax rates on wealthy Americans. And lawmakers in the president’s Democratic Party are angry over his suggestion to switch to a modified formula to measure inflation, which will lower annual cost-of-living increases for Social Security recipients.
Obama will host a group of 12 Republican lawmakers at a private dinner at the White House Wednesday night to discuss his budget proposals.
President Obama’s Proposed 2014 Budget
- Includes $1.8 trillion of additional budget deficit reduction over 10 years
- Closes tax loopholes and reduces tax benefits for the wealthiest
- Includes $400 billion in health savings
- Includes $1 billion investment to launch manufacturing innovation institutes
- Provides $50 billion for infrastructure investment
Source: White House