Photos Loading
previous next
  • Susan Walsh, File / AP Photo

    FILE - In this April 3, 2013 file photo, President Barack Obama speaks at the Police Academy in Denver. A senior administration official said Friday, April 5, 2013 that Obama's proposed budget will call for reductions in in the growth of federal Social Security pensions and other benefit programs in an attempt to strike a compromise with congressional Republicans.

  • Cliff Owen, File / AP Photo

    FILE - In this March 6, 2011 file photo, Denis McDonough speaks in Sterling, Va. President Barack Obama’s budget proposal will include an additional $2.5 billion to attack a growing backlog of veterans disability claims, a problem officials said is likely to worsen in coming months. White House chief of staff Denis McDonough told reporters Friday that more money for the VA in tight budgetary times reflects Obama's commitment to veterans.

  • Matt Rourke, File / AP Photo

    FILE - In this Feb. 20, 2013 file photo, Human Services Secretary Kathleen Sebelius speaks in Philadelphia. President Barack Obama’s budget next week will steer clear of major cuts to Medicaid, including tens of billions the administration proposed only last year. The White House is holding harmless the federal-state health care program for low-income people while wooing financially skittish states to expand Medicaid coverage to millions now uninsured.

0 comments | Print

Obama: Budget not `ideal' but has `tough reforms'

Published: Saturday, Apr. 6, 2013 - 3:04 am
Last Modified: Saturday, Apr. 6, 2013 - 9:39 am

President Barack Obama says his soon-to-be released budget, already criticized by friends and foes, is not his "ideal plan" but offers "tough reforms" for benefit programs and scuttles some tax breaks for the wealthy.

That's a mix, he contends, that will provide long-term deficit reduction without harming the economy.

In his first comments about the 2014 spending blueprint he's set to release Wednesday, Obama said he intends to reduce deficits and provide new money for public works projects, early education and job training.

"We don't have to choose between these goals - we can do both," Obama said in his weekly radio and Internet address, broadcast Saturday.

Obama's plan for the budget year that begins Oct. 1 calls for slower growth in government benefits programs for the poor, veterans and the elderly, as well as higher taxes, primarily from the wealthy.

Some details, made public Friday, drew a fierce response from liberals, labor unions and advocates for older Americans. House Speaker John Boehner, R-Ohio, was not impressed, either.

"It's a compromise I'm willing to accept in order to move beyond a cycle of short-term, crisis-driven decision-making, and focus on growing our economy and our middle class for the long run," Obama said.

Obama proposes spending cuts and revenue increases that would result in $1.8 trillion in deficit reductions over 10 years, replacing $1.2 trillion in automatic spending cuts that are otherwise poised to take effect over the next 10 years.

Counting reductions and higher taxes that Congress and Obama have approved since 2011, the 2014 budget would contribute $4.3 trillion to total deficit reduction by 2023.

The main deficit reduction elements of the plan incorporate an offer Obama made to Boehner in December when both sought to avoid automatic, across-the-board spending cuts and broad tax increases

Obama's plan includes $580 billion in new taxes that Republicans oppose. There's also a new inflation formula, rejected by many liberals, that would reduce the annual cost of living adjustments for a range of government programs, including Social Security and benefits for veterans.

In his address, Obama said he would achieve deficit reduction by making "tough reforms" to Medicare and enacting "common-sense tax reform that includes closing wasteful tax loopholes for the wealthy and well-connected."

Obama made no mention of the effect his budget would have on Social Security and other social safety net programs. That idea drew a hostile reaction from some of his most ardent political backers.

An Associated Press-GfK poll conducted late last year found that 49 percent of those asked were opposed to changing the way Social Security benefits are calculated to produce smaller annual increases and reduce the federal budget deficit.

The poll found 30 percent supported the idea and 15 percent were neutral. Of those opposed to a recalculation, 32 percent said they "strongly opposed" the change, compared with just 11 percent who strongly support it.

Obama rejected a House Republican plan that aims to balance the budget in 10 years with steep cuts in domestic spending.

His remarks reflected the White House's argument that Obama's blend of tax increases and spending cuts have widespread public support and will ultimately change the terms of the fiscal debate in Washington.

"My budget will reduce our deficits not with aimless, reckless spending cuts that hurt students and seniors and middle-class families, but through the balanced approach that the American people prefer, and the investments that a growing economy demands," he said.

Still, Obama has been unable to move House Republicans from their opposition to higher taxes, and his proposed reduction in the growth of benefits drew swift objections from allies.

"The president should drop these misguided cuts in benefits and focus instead on building support in Congress for investing in jobs," AFL-CIO President Richard Trumka said in a statement Friday.

Kansas Gov. Sam Brownback delivered the Republican radio and Internet address, arguing that "the ideas on how to fix the federal government are now percolating in the states."

"You see, you don't change America by changing Washington - you change America by changing the states," he said. "And that's exactly what Republican governors are doing across the country - taking a different approach to grow their states' economies and fix their governments with ideas that work.

Brownback, a former House member and senator, called for a "taxing structure that encourages growth, an education system that produces measurable results, and a renewed focus on the incredible dignity of each and every person, no matter who they are."

---

AP Director of Polling Jennifer Agiesta contributed to this report.

---

Online:

http://www.whitehouse.gov/briefing-room/weekly-address

http://www.youtube.com/gopweeklyaddress

Read more articles by JIM KUHNHENN



About Comments

Reader comments on Sacbee.com are the opinions of the writer, not The Sacramento Bee. If you see an objectionable comment, click the "Report Abuse" link below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.

What You Should Know About Comments on Sacbee.com

Sacbee.com is happy to provide a forum for reader interaction, discussion, feedback and reaction to our stories. However, we reserve the right to delete inappropriate comments or ban users who can't play nice. (See our full terms of service here.)

Here are some rules of the road:

• Keep your comments civil. Don't insult one another or the subjects of our articles. If you think a comment violates our guidelines click the "Report Abuse" link to notify the moderators. Responding to the comment will only encourage bad behavior.

• Don't use profanities, vulgarities or hate speech. This is a general interest news site. Sometimes, there are children present. Don't say anything in a way you wouldn't want your own child to hear.

• Do not attack other users; focus your comments on issues, not individuals.

• Stay on topic. Only post comments relevant to the article at hand.

• Do not copy and paste outside material into the comment box.

• Don't repeat the same comment over and over. We heard you the first time.

• Do not use the commenting system for advertising. That's spam and it isn't allowed.

• Don't use all capital letters. That's akin to yelling and not appreciated by the audience.

• Don't flag other users' comments just because you don't agree with their point of view. Please only flag comments that violate these guidelines.

You should also know that The Sacramento Bee does not screen comments before they are posted. You are more likely to see inappropriate comments before our staff does, so we ask that you click the "Report Abuse" link to submit those comments for moderator review. You also may notify us via email at feedback@sacbee.com. Note the headline on which the comment is made and tell us the profile name of the user who made the comment. Remember, comment moderation is subjective. You may find some material objectionable that we won't and vice versa.

If you submit a comment, the user name of your account will appear along with it. Users cannot remove their own comments once they have submitted them.

hide comments
Sacramento Bee Job listing powered by Careerbuilder.com
Quick Job Search
Buy
Used Cars
Dealer and private-party ads
Make:

Model:

Price Range:
to
Search within:
miles of ZIP

Advanced Search | 1982 & Older



Find 'n' Save Daily DealGet the Deal!

Local Deals