WASHINGTON (AP) - President Barack Obama is sending Congress a $3.8 trillion spending blueprint that strives to achieve a "grand bargain" to tame runaway deficits.
It would raise taxes on the wealthy and trim popular benefit programs including as Social Security and Medicare.
The president's budget projects deficit reductions of $1.8 trillion over the next decade, achieved with higher taxes, reductions in payments to Medicare providers and trims in the cost-of-living adjustments paid to millions of recipients in Social Security and other government programs.
The budget would also nearly double the federal tax on cigarettes to $1.95 per pack. That money would fund a new pre-school program for 4-year-olds.
The president proposes spending $3.8 trillion in the 2014 fiscal year, which begins Oct. 1, up 2.5 percent from this year.
Senator Jim Inhofe released the following statement about the president's budget:
“As we have come to expect, the President’s budget request today is all fantasy and comes nowhere close to addressing the reality of our unstable economy. It spends $46.5 trillion over the next ten years, never cuts spending, and never balances. He raises taxes by $1.1 trillion on hardworking Americans. He targets the oil and gas industry with $40.7 billion in tax hikes, further proof that the President is doing everything he can to wage an all out war on fossil fuels. Under the President’s budget the nation would add $8.2 trillion in new debt and will ultimately cause the country to spend more on interest payments than on national defense.
“When it comes to his budget request for defense, the President failed to address the unprecedented resource challenges facing our military and failed to even acknowledge the mandatory cuts associated with sequestration. It’s time this President finally confronts the true cause of our growing and unsustainable debt, which is his unsustainable growth in mandatory spending and unbridled domestic spending. If we want America to remain the greatest nation on earth with a wealth of opportunities for future generations, we need to cut spending, balance the budget, and ensure a strong national defense.”
Oklahoma Congressman Frank Lucas released a statement about the president's budget:
“President Obama submitted his budget plan today. Not only was it submitted two months late, but it also includes more tax hikes on hard working Americans and fails to create balance. This is the last thing Americans need at a time when unemployment rates remain high and we face a national debt over $16.7 trillion. Adding an extra layer of tax burdens on hard working Americans will not create economic prosperity. The president needs to realize our country has a spending problem, and only commonsense spending cuts will help solve our nation’s debt disaster.
“Recently, House Republicans passed a budget that balances the federal government’s checkbook by reducing the deficit $4.6 trillion over the next 10 years. This is a plan that will help restore financial stability and create jobs in our country. The president should follow our lead and make similar spending cuts to help get our country on the right path. I will continue to work with leaders of Congress to enact real spending reforms that will allow our country to thrive – Americans can’t wait much longer for a budget that actually balances.”
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