Obama to Present Federal Budget Proposal Monday
The President will present a proposal for the deferral budget on Monday. It will exceed spending caps that were mandated four years ago by Congress and propose new bank taxes and capital gains. This effort is probably going to find resistance from the opposition.
US budget deficit is down to the level it was pre-crisis and Obama is now going to try to get approval from the congress to remove current spending caps or “sequestration” as its commonly known. According to the President, these capos undermine domestic programs and harm military preparedness. The plan would mean spending $74 billion more than the cap would allow.
This plan is only the beginning of the battle between Republicans, Capitol Hill and White House. This is an annual battle and has become a ritual that shows congressional dysfunction.
In 1974 legislation required the Congress to propose a budget for revenue and spending, however, this measure has not been passed by lawmakers ever since 2009.
Thursday, after the White House had released their figures, Senator Orrin Hatch, chairman on the Finance Committee commented that Obama is the most fiscally irresponsible and liberal president, who doesn’t realize it himself.
A big change in the budget debate this year relies in the fact that now GOP has control over both Congress houses. This may mean that a somewhat easier deal can be achieved between both parties, however, the huge gap between the ideas of the White House and the Republicans is still hard to overcome.
Mr. Hatch is convinced that American debt problems are not caused by low taxes, but instead, high government spends.
The proposal that Obama is going to present will be 7% higher than the discretionary levels of 2016. $530 billion would be given to non-defense and $561 billion to defense spending, that is $37 billion and $38 billion respectively over the caps.