WASHINGTON, April 10 The White House on
Wednesday proposed a budget that sharply trims the U.S. deficit
over three years by forcing millionaires to pay more in taxes
and enacting spending cuts that replace the "sequester"
reductions that went into place last month.
President Barack Obama's fiscal 2014 budget blueprint
ensures that those making $1 million a year or more would have
to pay at least 30 percent of their income, after gifts to
charity, in taxes, officials said.
That increase, along with spending cuts and a 28 percent cap
on tax deductions for high earners, would bring the U.S. budget
deficit down to 2.8 percent of GDP by 2016, senior
administration officials told reporters. The nonpartisan
Congressional Budget Office in February projected the U.S.
deficit to be 5.3 pct of GDP this year.
The president's budget stands little chance of being enacted
into law. However, senior administration officials said that, in
spite of Republican leaders' resistance to tax increases, they
hoped it could lead to a deficit reduction accord.
"There continue to be people who are on the Republican side
... in the Senate at least, who are saying things that would
give you some hope that there is a path to a deal," a senior
administration official told reporters.