• President's 2013 Budget Released
  • February 16, 2012 | Author: B. Jeffrey Brooks
  • Law Firm: Adams and Reese LLP - Washington Office
  • President Obama released the administration's Federal Budget for fiscal year 2013.  In keeping with the Budget Control Act, the budget reflects the $1 trillion reduction in discretionary spending over 10 years.   Additionally, the budget includes $4 trillion in balanced deficit reduction; this would make the deficit balance 3% of the GDP, stabilizing the debt-GDP ratio.

    Included in the Presidents budget are job creation initiatives, education reforms, funding for innovation and manufacturing, funding for infrastructure improvements, and tax reforms.

    Job Creation

    • Extends the payroll tax cuts and unemployment benefits for 2012
    • Funds job creation initiatives for infrastructure and education
    • Introduces a new tax credit for small businesses

    Education Reform

    • Funds Race to the Top and programs aimed at improving childcare and teacher quality
    • Retains the maximum Pell Grant award amount through the 2014-2015 award year
    • Makes the American Opportunity Tax Credit permanent

    Innovation and Manufacturing

    • Funds research and development initiatives, increasing non-defense research and development funding by 5%
    • Introduces new grant management policies to increase the number of new research grants
    • Eliminates 12 existing tax credits for oil, gas, and coal, companies, with the goal of increasing clean energy sources

    Infrastructure Improvements

    • Supports a 6-year, $476 billion surface transportation authorization bill
    • Funds the National Infrastructure Bank
    • Builds a next-generation, wireless broadband network and establishes an interoperable network for public safety

    Tax Reforms

    • Reforms and simplifies the individual tax code
    • Introduces the Financial Crisis Responsibility Fee, requiring large financial institutions to compensate taxpayers via funding for Troubled Asset Relief Program (TARP) and the
    • Presidents mortgage refinancing program
    • Reforms Medicare, Medicaid, and other health programs over 10 years
    • Implements cuts in Defense spending