President Obama has sent Congress a new budget with a price tag of $3.8 trillion, and everyone is drawing a line in the sand. There are some Democrats and the Obama administration, which believe that the president is taking a balanced approach to economic growth. They agree that there is a need for spending cuts, and rebuilding the country’s infrastructure with increased tax revenues.

The Republicans, on the hand are against increases in any taxes and want the tax rate lowered. They want the government to take a radical approach to deeper spending cuts, and they want a balanced budget. It is their understanding that they can make all this happen immediately, and they have no time to wait.

As both sides argue their positions, they both agree that they want the economy to continue to grow, and lower the national debt. Both sides admit the federal deficit is going in the wrong direction, and it needs to go down. The problem is both sides don’t have a plan to lower the debt, and it continues to increase each year.

In this new budget President Obama is forecasting a deficit of $1.3 trillion. The deficit each year that President Obama has been in office, his deficit projections has hovered around $1 trillion, and the Republican feel the president is not doing his job.

“We built this budget around the idea that our country has always done best when everyone gets a fair shot, everyone does their fair share and everyone plays by the same rules,” Obama said in his budget message. The president goal is to increase taxes on the rich, boost spending in key areas such as transportation, infrastructure, and education.

The Republicans are determined to oppose President Obama’s tax increases, and they feel the president is not trying to balance the budget. They contend the president is not doing enough to attack a dangerous deficit problem. Many are starting an argument that the U.S. is almost bankrupted, and the president’s new budget is taking us down a destructive path.

Early in his presidency, the president promised that he would cut the deficit in half by the end of his first term. This was an extremely aggressive promise and now many of the Republicans are asking what happened to this promise. Throughout history many other presidents have made the same promise, about cutting the deficit, and they also were not able to deliver.

The Republicans will be putting out a budget plan soon, and everyone is expecting that there will be deeper cuts in Medicare, Social Security, and the Pentagon. Their goal is to cut everywhere, but in order for the economy to keep growing, there is a need for more jobs, more revenue and more citizens/businesses spending.

With President Obama’s new budget there are still areas and measures where he can cut more. In his new budget he is sticking to caps on annual appropriations that will save over $1 trillion over the next decade. He is putting forward $1.5 trillion in new taxes, with the expiration of Bush tax cuts, and proposing a new $61 billion tax cut over 10 years on big banks.

To spur job creation, Obama is proposing $50 billion investment in transportation, $30 billion to modernize schools and $30 billon to help states hire teachers. The new Obama budget seeks $360 billion in saving in Medicare, but the cuts will not be as drastic as the Republicans. The budget battle is starting and I am hoping that the two sides can compromise, and get the budget signed.

 

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