President Obama’s budget to be released on Wednesday would leave the nation with a $744 billion budget deficit in 2014 despite new entitlement cuts and tax hikes.
The $1.058 trillion budget for fiscal year 2014 — which will arrive on Capitol Hill about two months late — would turn off the automatic spending cuts known as the sequester and raise $580 billion in new tax revenue over ten years by limiting tax deductions for upper-income households.
The budget increases spending in 2014 when compared to spending under the sequester. Leaving the sequester in place would lead to $966 billion in discretionary spending in 2014.
Total spending in fiscal year 2014 including on entitlements would be $3.77 trillion.
For the first time, Obama’s budget counts revenue from a “Buffett Rule” requiring that households with annual income over $1 million pay at least a 30 percent tax rate after charitable deductions. The rule is named after investor Warren Buffett and was only a suggestion in the last Obama budget.
The budget would cut entitlement spending by $230 billion by adopting a new formula known as “chained consumer price index” that would more slowly increase benefits for Social Security and other programs for inflation.
Unlike the House Republican budget, Obama’s budget would not balance, though it would reduce the deficit as a percentage of gross domestic product to 1.7 percent by 2023.
Read more: http://thehill.com/blogs/on-the-money/budget/292851-obama-to-unveil-1058t-budget#ixzz2Q4IrtCLy
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