Obama's Budget Sets Up Fight With GOP

He wants to beef up domestic spending, raise taxes on rich
By John Johnson,  Newser Staff
Posted Feb 11, 2012 1:35 PM CST

(Newser) – The major news outlets are getting details of the budget plan President Obama will unveil on Monday, and it sounds like it's designed to set up election-year comparisons with Republicans. Two big themes: It calls for higher taxes on the rich and big spending on roads and manufacturing projects. It also projects the 2012 deficit will rise slightly to $1.33 trillion before dropping to $901 billion in fiscal 2013. Other details:

story continues below

  • Obama will call for $350 billion in "short-term job spending," $60 billion "to refurbish at least 35,000 schools and help state and local governments hire and retain teachers," and $2.2 billion for manufacturing R&D. Overall, he wants a 5% hike in research spending unrelated to the military. New York Times
  • Obama's plan would "pump nearly $500 billion into new transportation projects over the next decade." Washington Post
  • It "resists sweeping cuts to government programs, preserves the structure of Medicare and Medicaid, and calls for close to $1.5 trillion in tax increases on higher-income Americans over 10 years." Wall Street Journal
  • The president will use about $230 billion in war savings to pay for domestic investments, "including a nearly 50% increase in transportation spending over six years." Politico
(Read more President Obama stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.