• President Obama Releases His Budget
  • March 11, 2014
  • Law Firm: McDonald Hopkins LLC - Cleveland Office
  • This week, President Obama released his budget. While the president's budget, which is required by law to be submitted to Congress yearly, is unlikely to move on the Hill, it is a snapshot of the administration's priorities.

    Here are some of the highlights:

    Defense

    • Increases overall defense spending by additional $28 billion in FY 2015
    • Decreases number of active-duty Army personnel; retires weapons systems, including A-10 attack aircraft

    Education

    • Makes permanent tax credits for higher education
    • Provides federal financing for pre-K programs

    Energy

    • Boosts spending on basic research
    • Increases funds to maintain the nation's nuclear weapons stockpile

    Entitlements

    • Removes a proposal to link Social Security benefits to chained CPI
    • Does not include plans to reform Medicare or Social Security programs

    Healthcare

    • Maintains funding for the Affordable Care Act

    Infrastructure

    • Provides $302 billion over four years to boost infrastructure spending

    Welfare

    • Increases Earned Income Tax Credit for parents of young children, expands eligibility for childless workers
    • Extends benefits for long-term unemployed

    Taxes

    • Taxes carried interest as personal income rather than capital gains

    • Proposes closing several corporate tax expenditures to raise revenue