President Barack Obama unveiled a $3.8 trillion spending plan on Monday for 2013 that seeks to achieve $4 trillion in deficit reduction over the next decade but does little to restrain growth in the U.S. government’s huge health benefit programs, a major cause of future deficits.
“Senate Democrats haven’t passed a budget in a thousand
days, even though the law requires it” Mitch McConnell
Obama’s new budget was immediately attacked by opposition Republicans as a retread of previously rejected ideas. The budget battle is likely to be a major component of the autumn election campaign.
The president would achieve $1.5 trillion of the deficit reductions in tax increases on the wealthy and by removing certain corporate tax breaks. Obama rejected Republican charges of class warfare. In his budget message, he said, “This is not about class warfare. This is about the nation’s welfare.”
The president is proposing $360 billion in cuts to Medicare and Medicaid and call for $278 billion in savings from non-health benefits programs such as agriculture subsidies and federal civilian worker pensions.
In terms of spending, the budget will include $350 billion for short-term job creation programs and $475 billion in infrastructure projects.
The election-year budget, however, is likely to gather dust on a Capitol Hill shelf.
Mitch McConnell is confident that even obama’s own party will not vote for it.