- White House to Finally Release Budget
- April 10, 2013
- Law Firm: McDonald Hopkins LLC - Cleveland Office
After weeks of speculation on when it would finally be released, the Obama White House announced it will release its budget next week on April 10th. The budget is being released two months later than required by federal law. White House officials claim the budget was not released by the legally mandated February 4th deadline because several budget battles with Congress made it difficult to arrive at final numbers.
The President’s budget is expected to be pitched by the administration as a “compromise” rather than the traditional approach where Presidents simply lay out their spending priorities regardless of whether they have a chance to become law.
This “compromise” budget is likely to include the offer President Obama made to House Speaker John Boehner (R-OH) last year that included $1.8 trillion in deficit reduction and tax increases.
While the President’s budget will include tax increases that are likely to draw fire from Republicans, his budget is also expected to propose significant cuts to Medicare and Social Security - a move that is likely to be opposed by many Democrats.
The President’s budget, however, is not all austerity. He is expected to propose an end to sequestration and new spending initiatives, such as universal pre-kindergarten for four-year-olds and a substantial investment in brain-mapping research. President Obama will pay for these new spending initiatives through a proposed increase in the cigarette tax, as well as a cap on how much wealthy individuals can accrue in their tax-free retirement accounts.