Mar 05 2014

Obama’s New Budget Proposal Takes Aim at Income Inequality But Boosts Military Spending

President Obama sent a $3.9 trillion dollar budget proposal to Congress yesterday. Most analysts are doubtful that the budget will actually be approved, instead seeing it as a reflection of election year politics which highlights the policy differences between the Republicans and Democrats.

In the ongoing effort to reduce the federal deficit (which by 2015 will actually be lower than when Obama first entered office), the budget proposes eliminating tax breaks for the wealthy to fund increased spending on education, job training and infrastructure. While the Administration would like to raise taxes on the wealthiest Americans, their plans to overhaul corporate tax codes would also include lowering the corporate tax rate from its current 35%.

Among the notable proposals is an expansion of the earned income tax credit to those who are childless. Currently that tax credit benefits low income families. The President also wants to offer Pre-K education to all 4 year olds across the nation with a $76 billion plan funded by an increase in taxes on tobacco products. And he has reiterated his support for an increase the minimum wage to $10.10 an hour.

GUEST: Mattea Kramer, Senior Research Analyst at National Priorities Project

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