President unveils new budget proposal
NEW YORK (CNNMoney) — President Obama on Tuesday released a nearly $4 trillion budget proposal for 2015 that includes more generous tax breaks for working families while scaling back breaks for the rich.
His budget, while not expected to be enacted by Congress, does offer the president’s fiscal policy vision for the country.
As expected, Obama’s blueprint sticks to the topline spending limits already set by the House and Senate for 2015.
But the plan also features a $56 billion growth and investment package that includes money for universal pre-K, infrastructure and job training. Obama proposes to pay for those initiatives through additional spending restraint and increased revenue.
The White House budget office estimates that Obama’s proposal overall would cut the annual deficit by 2024 to 1.6% of the size of the economy, less than half of where it’s projected to be that year under current policies.
But a key part of his budget is a series of tax changes designed to give a hand to low- and middle-income workers. To pay for those changes and to help reduce deficits, Obama, as he done repeatedly throughout his presidency, proposes to raise the tax burden on the rich.
For instance, he will again propose the so-called Buffett Rule, which would require people making over $1 million to pay at least 30% of their income, after charitable contributions, in federal taxes.