Obama budget: $3.8 trillion for 2001
Jenny Anzelmo, Editor-In-Chief
Issue date: 2/4/10 Section: Politics
In 2010 the U.S. government is projected to accumulate $1.6 trillion in debt and on Monday President Barack Obama sent congress a $3.8 trillion budget proposal for fiscal year 2011, his second budget proposal since taking office. The proposed budget adds a projected $1.27 trillion in deficit spending.
Several focal points from the president's agenda, including job creation, education and clean energy, are slated for increased federal spending in his budget proposal. The nearly 40 percent of federal spending used for Medicare, Medicaid and Social Security did not see any significant savings under the proposal, according to an article on usatoday.com.
Obama's budget director Peter Orszag said a freeze on domestic spending, tax increases on high-income families and improved economic recovery could reduce the deficit by 2014 from the current 10.6 percent to 4 percent of the U.S. economy. However, he acknowledged this falls short of the 3 percent held as qualifying for a balanced budget, according to the article on usatoday.com.
Acknowledging the substantial deficit increase, Obama said this spending is necessary to keep the economy moving forward.
"If we had taken office during ordinary times, we would have started bringing down these deficits immediately. But one year ago, our country was in crisis," Obama said during a press conference on Monday. "We initiated a rescue and that rescue was not without significant costs. It added to the deficit as well. One year later, because of the steps we've taken, we're in a very different place. But we can't simply move beyond this crisis; we have to address the irresponsibility that led to it and that includes the failure to rein in spending as well as reliance on borrowing."
GOP leaders quickly jumped to oppose Obama's proposed budget, especially his decision to let the so called "Bush tax cuts" expire, for families that make more than $250,000 a year.
"The President's budget spends more than any other in history, creates the largest deficits in history and imposes the largest tax increases in history at a time when our country can least afford it…." House Minority Whip and Virginia Congressman Eric Cantor said in a statement released Monday.
Several focal points from the president's agenda, including job creation, education and clean energy, are slated for increased federal spending in his budget proposal. The nearly 40 percent of federal spending used for Medicare, Medicaid and Social Security did not see any significant savings under the proposal, according to an article on usatoday.com.
Obama's budget director Peter Orszag said a freeze on domestic spending, tax increases on high-income families and improved economic recovery could reduce the deficit by 2014 from the current 10.6 percent to 4 percent of the U.S. economy. However, he acknowledged this falls short of the 3 percent held as qualifying for a balanced budget, according to the article on usatoday.com.
Acknowledging the substantial deficit increase, Obama said this spending is necessary to keep the economy moving forward.
"If we had taken office during ordinary times, we would have started bringing down these deficits immediately. But one year ago, our country was in crisis," Obama said during a press conference on Monday. "We initiated a rescue and that rescue was not without significant costs. It added to the deficit as well. One year later, because of the steps we've taken, we're in a very different place. But we can't simply move beyond this crisis; we have to address the irresponsibility that led to it and that includes the failure to rein in spending as well as reliance on borrowing."
GOP leaders quickly jumped to oppose Obama's proposed budget, especially his decision to let the so called "Bush tax cuts" expire, for families that make more than $250,000 a year.
"The President's budget spends more than any other in history, creates the largest deficits in history and imposes the largest tax increases in history at a time when our country can least afford it…." House Minority Whip and Virginia Congressman Eric Cantor said in a statement released Monday.
Be the first to comment on this story