By Krystina Pedersen |Staff Writer|
As the days until the November 2012 presidential elections dwindle down, Pres. Barack Obama attempts to keep his job by proposing a $3.8 trillion budget for U.S. recovery.
“My budget will keep recovery ‘on track’,” said Obama. He proposed a budget in an attempt to generate economic recovery through “necessary” spending on job training, education and by dedicating $8 billion to community colleges.
The biggest amount Obama has set aside is an outstanding $476 billion six-year transportation package. Gasoline tax expenses will cover more than half of the total $476 billion six-year commitment.
As much as $231 billion would be financed through savings dedicated to reduce military spending as a result of the U.S. withdrawal from Iraq and Obama’s plan to bring home American troops from Afghanistan.
Obama also stated that through his plan, $4 trillion will be removed from the federal debt within the next 10 years. Increasing investments in jobs, manufacturing, transportation and education will be funded through higher taxes on the wealthy.
The proposed line for fiscal year 2013 is set to rely on higher taxes and annual spending cuts in an attempt to lower the deficit by $1 trillion each year.
The proposal calls for taxes to rise from 15 percent to 20 percent by 2022. Spending would decline slightly, from 24 percent to 23 percent.
Obama also ordered a repeal of George W. Bush tax cuts for individuals who make more than $200,000 annually, and joint filers who make more than $250,000.
The $1.33 trillion deficit for this fiscal year, ending Sept. 30, is almost identical to the $1.25 trillion deficit Obama predicted for fiscal 2010.
While administration officials elaborated that the $901 billion deficit now estimated for 2013 is just 5.5 percent of gross domestic product (GDP), Obama predicted in 2009 that he would come down to 2.9 percent of GDP by this point.
“I think Obama’s plan has good intentions. I would like to see things with the economy improve, and I would definitely like to see more money being put towards education,” said student Laura Melgoza.
Although Obama’s plan sparks positive interest in some people, others don’t see it as a possibility.
When Republican candidates heard about Obama’s plan they immediately began to point out what they considered to be flaws.
Republican candidates noted a deficit of $1.33 trillion for the current budget year, the fourth straight year of a deficit staying above $1 trillion.
Republican candidates also disapproved of taxes being raised.
In order to get back on track Obama has to make difficult cuts, to keep the economy growing and creating jobs.
“By reducing our deficit in the long term, what that allows us to do is to invest in the things that will help grow our economy right now,” Obama said at the State of the Union.
“We can’t cut back on those things that are important for us to grow. We can’t just cut our way into growth,” continued Obama.