Over this past week, President Barack Obama sent his 2014 budget package to Congress. The package entails a $3.8 trillion blueprint for spending that Obama Camp says is designed to create the “ultimate bargain.” The goal of the spending package is to reduce runaway spending deficits by raising taxes on the wealthy and reducing benefits of Social Security and Medicare.
The President’s budget package is intended to reduce the deficit by $1.8 trillion over the next decade by means of increased taxes on the wealthiest Americans and reduction in key benefits that the elderly enjoy on programs related to Social Security. The goal of the blueprint is to counter nearly $1.2 trillion in automatic budget cuts.
The proposed budget by Obama for 2014 would increase our nation’s budget by 2.5 percent in 2014. The budget for the current year is at about $973 billion, and under Obama’s proposed plan, it would be reduced to $744 billion in 2014, which would earmark the first time our budget has been below $1 trillion since 2008.
“I have already met Republicans more than halfway, so in the coming days and weeks I hope that Republicans will come forward and demonstrate that they’re really as serious about the deficit and debt as they claim to be,” Obama said in the White House Rose Garden in a statement to the press.
The budget is expected to be met with fierce resistance by Republicans in Congress, who are unlikely to approve increased taxes on the wealthy. The most recent increase of $660 billion to the top income earners was fought against fervently by Congress, but was ultimately passed as a deal to avoid automatic budget cuts and a government shutdown.
Over the past four years, Obama has witnessed federal deficits of more than $1 trillion for each year. And the budget plan that was pass by the GOP-controlled House is estimated – and intended – to reach a balance by 2023, a year in which the Obama administration projects there will only be a $439 billion deficit.