United States

Obama reveals 2013 Budget


President Obama revealed his 2013 Budget proposal yesterday on a visit to Virginia. The budget is the opening shot in what will be a long campaign in Congress. There is no chance of the budget being passed, but the debate around the budget will determine the two approaches to government by the Democrats and the Republicans.

The budget was condemned by Republicans almost before it was published. They are especially adamant that there should be no tax increases, so will oppose the move to raise the taxes on people earning more than $1 million a year.

The $3.8 trillion budget also contained investments in education and transportation.

The statement published on the White house website reads as follows:

President Obama travelled to Annadale in northern Virginia this morning to talk about his budget for the 2013 fiscal year — and how it will boost job creation to speed our economic recovery.

A core set of themes helps to define this budget, and in talking to the crowd, the President laid out those ideas:

“[An] economy built to last demands that we keep doing everything we can to help students learn the skills that businesses are looking for. It means we have to keep strengthening American manufacturing. It means we’ve got to keep investing in American energy. We’ve got to double down on the clean energy that’s creating jobs. But it also means we’ve got to renew the American values of fair play and shared responsibility”.

To help reflect that shared responsibility, the President is proposing a new set of reforms that guarantees that millionaires don’t pay a lower rate in taxes than the middle class. He said:

“Right now, we’re scheduled to spend nearly $1 trillion more on what was intended to be a temporary tax cut for the wealthiest 2 percent of Americans. We’ve already spent about that much. Now we’re scheduled to spend another trillion. Keep in mind, a quarter of all millionaires pay lower tax rates than millions of middle-class households. You’ve heard me say it — Warren Buffett pays a lower tax rate than his secretary. That’s not fair. It doesn’t make sense at a time when we’ve got to pull together to get the country moving”.

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