News / USA

President Obama Unveils Budget Proposal

The newly published 2012 budget documents on display at the U.S. Government Printing Office in Washington, February 10, 2011
The newly published 2012 budget documents on display at the U.S. Government Printing Office in Washington, February 10, 2011

Multimedia

Michael Bowman

U.S. President Barack Obama has unveiled a $3.7 trillion federal budget for next year that seeks to cut America’s mammoth deficit while retaining certain spending priorities to spur future economic expansion.

Republicans, who control one house of Congress, are dismissing the president’s proposed budget as a costly burden to the economy that fails to address a fiscal crisis. The positions staked out constitute opening bids in what is expected to be a protracted battle over the government’s finances.

President Obama says painful choices must be made to put America’s fiscal house in order. "I’ve called for a freeze on annual domestic spending over the next five years.  This freeze would cut the deficit by more than $400 billion over the next decade, bringing this kind of spending - domestic discretionary spending - to its lowest share of our economy since Dwight Eisenhower was president [in the 1950s]," he said.

The president’s budget mandates cuts in defense spending, environmental protection and many other government endeavors. It assumes robust economic growth in coming years, and limits tax deductions for the wealthy as well as corporate tax breaks. Overall projected deficit reduction totals more than $1 trillion over 10 years.

At the same time, the proposed budget expands funding for infrastructure projects, clean energy initiatives and educational priorities. Speaking at a primary school in Baltimore, Maryland, Mr. Obama said America must continue to invest with an eye to the future. "I’m convinced that if we out-build and out-innovate and out-educate, as well as out-hustle the rest of the world, the jobs and industries of our time will take root here in the United States.  Our people will prosper and our country will succeed," he said.

Republicans promptly blasted the president’s budget blueprint, saying it would add more than $7 trillion to the national debt and push America to financial ruin. Republican Representative Paul Ryan of Wisconsin is chairman of the House Budget Committee. "It is not too late to right our ship, get our economy growing, get our debt headed in the right direction, and get America’s fiscal problems solved. But if we keep postponing this, if we keep punting [refusing to tackle the problem] like this budget does, then there will come a moment when it is too late," he said.

The Senate’s top Republican, Mitch McConnell of Kentucky, was even more blunt. "We’re broke [out of money]. We’re broke. We don’t have the money," he said.

Republican legislators have yet to craft an alternative 2012 budget of their own, but are intent on slashing current federal spending, and promise to keep cutting until fiscal woes are solved.

Congressman Ryamn said, "The debt crisis is caused by spending, not taxes. And so, let’s go where the problem is, and that is spending."

President Obama maintains that deep spending cuts favored by Republicans would harm America’s future economic prospects, and unfairly force the poor and vulnerable to bear the cost of years of fiscal excess. Republicans counter that a bloated federal government and ever-expanding national debt will destroy the country, harming everyone - rich and poor alike.

Budget analyst Bill Frenzel of the Brookings Institution says compromise is possible, if Mr. Obama and congressional Democrats are willing to consider deeper spending cuts, and Republicans agree to some form of increased taxation. "As long as Republicans like to cut expenses and Democrats are not as anxious to do so and would rather have a tax component, I think everyone will get less than they want from this budget," he said.

Economists say neither side in the budget debate has yet to embrace badly-needed reforms to programs that provide income and health care assistance to retirees, the costs of which are expected to sky-rocket in coming years. They argue, until those costs are contained, America’s fiscal and economic health will continue to suffer.

The first congressional budget votes could come as early as next week, but a final deal - if one can be struck - is likely months away.

You May Like

Will Cuba Follow the Southeast Asia Model?

Decision to restore ties between US and Cuba has some debating whether it will lead to enhancement or regression of democracy for Communist island nation More

Kenyan Designer Finds Her Niche in Fashion Industry

‘Made in China’ fabrics underlie her success More

Report: CIA, Israel's Mossad Killed Senior Hezbollah Commander

The Washington Post story says Imad Mughniyah was killed instantly by a bomb "triggered remotely" from Tel Aviv by Mossad agents More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Jefferson's Library Continues to Impress, 200 Years Lateri
X
Deborah Block
January 31, 2015 12:12 AM
Two hundred years after the U.S. Congress purchased a huge collection of books belonging to former President Thomas Jefferson, it remains one of America’s greatest literal treasures and has become the centerpiece of Washington’s Library of Congress. VOA’s Deborah Block reports.
Video

Video Jefferson's Library Continues to Impress, 200 Years Later

Two hundred years after the U.S. Congress purchased a huge collection of books belonging to former President Thomas Jefferson, it remains one of America’s greatest literal treasures and has become the centerpiece of Washington’s Library of Congress. VOA’s Deborah Block reports.
Video

Video Egypt's Suez Canal Dreams Tempered by Continued Unrest

Egypt plans to expand the Suez Canal, raising hopes that the end of its economic crisis may be in sight. But some analysts say they expect the project may cost too much and take too long to make life better for everyday Egyptians. VOA's Heather Murdock reports.
Video

Video Threat of Creeping Lava Has Hawaiians on Edge

Residents of the small town of Pahoa on the Big Island of Hawaii face an advancing threat from the Kilauea volcano. Local residents are keeping a watchful eye on creeping lava. Mike O’Sullivan reports.
Video

Video Pro-Kremlin Youth Group Creatively Promotes 'Patriotic' Propaganda

As Russia's President Vladimir Putin faces international pressure over Ukraine and a failing economy, unofficial domestic groups are rallying to his support. One such youth organization, CET, or Network, uses creative multimedia to appeal to Russia's urban youth with patriotic propaganda. VOA's Daniel Schearf reports.
Video

Video Filmmakers Produce Hand-Painted Documentary on Van Gogh

The troubled life of the famous 19th century Dutch painter Vincent van Gogh has been told through many books and films, but never in the way a group of filmmakers now intends to do. "Loving Vincent " will be the first ever feature-length film made of animated hand-painted images, done in the style of the late artist. VOA’s George Putic reports.
Video

Video Issues or Ethnicity? Question Divides Nigeria

As Nigeria goes to the polls next month, many expect the two top presidential contenders to gain much of their support from constituencies organized along ethnic or religious lines. But are faith and regional blocs really what political power in Nigeria is about? Chris Stein reports.
Video

Video Rock-Consuming Organisms Alter Views of Life Processes

Scientists thought they knew much about how life works, until a discovery more than two decades ago challenged conventional beliefs. Scientists found that there are organisms that breathe rocks. And it is only recently that the scientific community is accepting that there are organisms that could get energy out of rocks. Correspondent Elizabeth Lee reports.
Video

Video Paris Attacks Highlight Global Weapons Black Market

As law enforcement officials piece together how the Paris and Belgian terror cells carried out their recent attacks, questions are being asked about how they obtained military grade assault weapons - which are illegal in the European Union. As VOA's Jeff Swicord reports, experts say there is a very active worldwide black market for these weapons, and criminals and terrorists are buying.
Video

Video Activists Accuse China of Targeting Religious Freedom

The U.S.-based Chinese religious rights group ChinaAid says 2014 was the worst year for religious freedom in China since the end of the Cultural Revolution. As Ye Fan reports, activists say Beijing has been tightening religious controls ever since Chinese leader Xi Jinping came to office. Hu Wei narrates.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Former Sudan 'Lost Boy' Becomes Chess Master in NYC

In the mid-1980’s, thousands of Sudanese boys escaped the country's civil war by walking for weeks, then months and finally for more than a year, up to 1,500 kilometers across three countries. The so-called Lost Boys of the Sudan had little time for games. But one of them later mastered the game of chess, and now teaches it to children in the New York area. VOA’s Bernard Shusman in New York has his story.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid