Obama budget plan claims $5.3 trillion in deficit reduction

WASHINGTON Tue Mar 4, 2014 11:36am EST

Copies of U.S. President Barack Obama's Fiscal Year 2015 Budget are delivered to The House Budget Committee on Capitol Hill in Washington, March 4, 2014. REUTERS/Yuri Gripas

Copies of U.S. President Barack Obama's Fiscal Year 2015 Budget are delivered to The House Budget Committee on Capitol Hill in Washington, March 4, 2014.

Credit: Reuters/Yuri Gripas

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WASHINGTON (Reuters) - President Barack Obama's fiscal 2015 budget aims to keep alive hopes for major deficit reduction by claiming that proposed tax hikes and spending proposals, coupled with previous actions, will lead to $5.3 trillion in budget savings over 10 years.

The budget request, most of which will be ignored by Congress, proposes savings of about $1.4 trillion over the 2015-2024 period from healthcare savings, closure of tax breaks for millionaires, and immigration reform.

It estimates that increased investments in infrastructure, education and an expanded tax credit for the working poor will reduce deficits by another $127 billion over the decade, and passage of immigration reform will kick in another $158 billion.

In total, the Obama budget shows annual deficits staying in the $400 billion to $500 billion range for much of the decade, reaching a benign 1.6 percent of gross domestic product in 2024, despite the rising cost of caring for the rapidly retiring Baby Boom generation.

The outlook from the non-partisan Congressional Budget Office looks far worse based on current tax and spending law, showing deficits that climb back to $1.1 trillion by 2024, or 4 percent of GDP, as more people choose to leave the workforce.

(Reporting by David Lawder; Editing by Bill Trott)

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Comments (1)
4825 wrote:
” hopes for major deficit reduction by claiming that proposed tax hikes and spending proposals, coupled with previous actions, will lead to $5.3 trillion in budget savings over 10 years.”

That hope and a few bucks will get you a cup of coffee at Starbucks. I feel confident that he is pushing any savings out to beyond the presidential election. More lame vote buying attempts.

Also, notice the quote that the CBO estimate looks far worse than what Obama is claiming. Note, “people choose to leave the workforce” is code for Obamacare job losses among others. If we leave the liberals in charge, that $1.1 trillion hole will be significantly higher.

Mar 04, 2014 2:11pm EST  --  Report as abuse
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