5 Things to Know About Obama's $3.99T Budget
The goal: a 'sustainable' deficit
By Matt Cantor,  Newser User
Posted Feb 2, 2015 7:54 AM CST
In a Friday, Jan. 30, 2015, file photo, President Barack Obama speaks in the East Room of the White House in Washington.   (AP Photo/Carolyn Kaster, File)
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(Newser) – President Obama has unveiled his fiscal 2016 budget, and it's not likely to receive a warm welcome from Republicans, Reuters reports. The $3.99 trillion plan for the budget year that begins Oct. 1 is founded on higher taxes both for the wealthy and corporations; some money will come from closing loopholes, USA Today reports. The budget aims "to bring middle-class economics into the 21st century," the White House says. Among its key points:

  1. That $3.99 trillion in spending meets with projected revenues of $3.53 trillion, for a deficit of $474 billion, or 2.5% of GDP. The AP reports the plan doesn't zero out the deficit over the next decade, but the administration maintains that various actions on health care, immigration, and taxes would trim the deficits by about $1.8 trillion over that period, leaving the red ink at manageable levels. Indeed, the goal is a "sustainable" deficit below 3% of GDP, Politico reports.

  1. Companies like General Electric and Microsoft would face a one-time 14% tax on what's thought to be $2.1 trillion in profits "piled up abroad," Reuters reports; firms would owe 19% on foreign profits in the future.
  2. Sequestration spending ceilings would end, USA Today reports, and domestic and military spending would climb by 7%, with infrastructure and education seeing benefits. Some $3 billion would go to science and math education. The bill would also cover two years' tuition for some community college students at a cost of $60 billion over 10 years. Also put forward: an up-to-$3,000 child care tax credit.
  3. The plan also puts forward $14 billion for upping cybersecurity, proposes paid-leave programs, and calls for $1 billion put toward a "fully democratic" Central America.
  4. Though much of the plan will be distasteful to Republicans, Obama has included significant boosts for GOP priorities like defense, Politico reports, calling the bill an "opening bid in a long hostage negotiation."