Obama proposing $478 billion public works program in budget

[webfact]

Obama proposing $478 billion public works program in budget
By JIM KUHNHENN and MARTIN CRUTSINGER

WASHINGTON (AP) — The $4 trillion budget that President Barack Obama sends Congress on Monday proposes higher taxes on wealthier Americans and corporations, and an ambitious $478 billion public works program for highway, bridge and transit upgrades.

The grab-bag of proposals, many recycled from past Obama budgets, already is generating fierce objections from Republicans, who control both chambers of Congress for the first time in his presidency. They will move ahead on their own, mindful they eventually must strike a deal with Obama, whose signature is needed for the budget to become law.

The spending blueprint for the 2016 budget year that begins Oct. 1 emphasizes the same themes as Obama's State of the Union address last month, when he challenged Congress to work with him on narrowing the income gap between the very wealthy and everyone else.

Obama, in an NBC interview before the Super Bowl, disputed a suggestion that he and the Republican-led Congress are so far apart that his budget proposals have no chance of winning approval.

"I think Republicans believe that we should be building our infrastructure," Obama said. "The question is how do we pay for it? That's a negotiation we should have."

The president said he was putting forward good proposals but was willing to listen to ideas presented by Republicans as well.

"My job is not to trim my sails and not tell the American people what we should be doing, pretending somehow we don't need better roads, that we don't need more affordable college," Obama said.

In documents obtained by The Associated Press, Obama lays out the country's first $4 trillion budget — $3.999 trillion before rounding — with proposed spending supported by $3.5 trillion in revenues.

The projected budget deficit would be $474 billion, slightly higher than the $467 billion forecast by the Congressional Budget Office for 2016. For the budget year that ended Sept. 30, the actual deficit was $483 billion. That was a marked improvement from the $1 trillion-plus deficits during Obama's first years in office, when the country was struggling to emerge from a deep recession.

The CBO sees the deficits rising for the rest of the decade, once again topping $1 trillion by 2025 as spending surges in the government's big benefit programs with the retirement of millions of baby boomers. Obama's budget projects a $687 billion deficit in 2025, though its forecast of economic growth would keep deficits at a manageable percentage of the gross domestic product.

Obama's budget does not make major changes in politically popular programs such as Social Security and Medicare. Republicans are promising action in their budget plans.

Obama's six-year $478 billion public works program would provide upgrades for the nation's highways, bridges and transit systems, in an effort to tap into bipartisan support for spending on badly needed repairs.

Half of that money would come from a one-time mandatory tax on profits that U.S. companies have amassed overseas, according to White House officials who spoke on condition of anonymity before the budget was released.

The tax on accumulated foreign profits would be set at 14 percent and due immediately. Under current law, those profits only face federal taxes if they are returned, or repatriated, to the U.S. where they face a top rate of 35 percent. Many companies avoid U.S. taxes on those earnings by simply leaving them overseas.

The administration wants to overhaul corporate taxes by ending certain tax breaks and lowering rates, a challenging task that Obama and Republican leaders insist they are ready to tackle.

Higher taxes on the wealthy and on fees paid by the largest financial institutions would help raise $320 billion for low- and middle-income tax credits. Obama also is calling for a $60 billion program for free community college for qualified students and an $80 billion child care initiative.

"What I think the president is trying to do here is to, again, exploit envy economics," said Rep. Paul Ryan, the new chairman of the tax-writing Ways and Means Committee. "This top-down redistribution doesn't work."

But Ryan, R-Wis., also told NBC's "Meet the Press" that he was willing "to work with this administration to see if we can find common ground on certain aspects of tax reform."

The administration's budget last year proposed a smaller four-year bridge and highway fund, relying on taxing accumulated foreign earnings, but without specifying a formula.

This time, the budget will call for the one-time 14 percent mandatory tax on the up to $2 trillion in estimated U.S. corporate earnings that have accumulated overseas. That would generate about $238 billion, by White House calculations. The remaining $240 billion would come from the federal Highway Trust Fund, which is financed with a gasoline tax.

The current 35 percent top tax rate for corporations in the United States, the highest among major economies, serves as a disincentive for U.S. companies to re-invest their foreign earning back in the United States.

Under Obama's plan, the top corporate tax rate for company profits earned in the U.S. would drop to 28 percent. While past foreign profits would be taxed immediately at the 14 percent rate, going forward new foreign profits would be taxed immediately at 19 percent, with companies getting a credit for foreign taxes paid.

Obama's budget will propose easing painful, automatic cuts to the Pentagon and domestic agencies with a 7 percent increase in annual appropriations. For 2016, he wants a $38 billion increase for the Pentagon; many Republicans support that.

But his demand for a nearly equal amount for domestic programs sets up a showdown that may not be resolved until late in the year.

Another centerpiece of the president's tax proposal is an increase in the capital gains rate on couples making more than $500,000 per year. The rate would climb from 23.8 percent to 28 percent.

Obama wants to require estates to pay capital gains taxes on securities at the time they are inherited. He also is trying to impose a 0.07 percent fee on the roughly 100 U.S. financial companies with assets of more than $50 billion.

Obama would take the $320 billion that those tax increases would generate over 10 years and funnel them into middle-class tax breaks. His ideas: a credit of up to $500 for two-income families, a boost in the child care tax credit to up to $3,000 per child under age 5, and overhauling breaks that help pay for college.
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Associated Press writer Andrew Taylor contributed to this report.


-- (c) Associated Press 2015-02-02

[HeijoshinCool]

1000 one dollar bills is 4.3" high

One million dollars is 358 feet high.

One billion dollars is 67.8 miles high.

One trillion dollars is 67, 800 miles high

The budget currently proposed reaches into space 203,400 miles. This is the distance from the Earth, to the moon.

Our (acknowledged) national debt is 18 trillion.

Perhaps, Mr. Obama, it's time to stop spending. Before we get to Uranus.

EDIT: spellchekker

Edited February 2, 2015 by HeijoshinCool

[shirtless]

Where is the money coming from and what campaign contributors will get these contracts, The us is broke yet the stupid world still follows their lead.

[pitrevie]

Where is the money coming from and what campaign contributors will get these contracts, The us is broke yet the stupid world still follows their lead.

As the British Parliamentarian Tony Benn used to observe we can always find lots of money when we want to kill people but build a bridge somewhere and, "my god where is the money coming from?"

[Chicog]

Where is the money coming from and what campaign contributors will get these contracts, The us is broke yet the stupid world still follows their lead.

At a wild guess:

" higher taxes on wealthier Americans and corporations"

[Emster23]

He'll be lucky if this congress funds toilet paper for the West Wing....

[ToddinChonburi]

is there any companies or rich people left in America to tax ? When the rich leave and the companies are all gone who pays the bill ? The middle class who are no longer the mddle class.

[wabothai]

Seems like they are steering for a stalemate again. Cut throat politics steering for chaos, and who benefits? guess.

[up-country_sinclair]

Regarding the tax on the money being held overseas: This is a common sense policy that is also good politics for both sides of the aisle.

Years ago these companies would have been referred to and scorned as tax scofflaws. The US government needs to claim this money and put it directly into infrastructure projects that will create good paying jobs throughout the country. America's roads and bridges are crumbling, and these companies are sitting on $2,000,000,000,000 overseas purposelessly to avoid paying the taxes they owe.

[Chicog]

is there any companies or rich people left in America to tax ?

Possibly one of the most entertaining comments I've read on TV.

No, they all eloped to Ireland and the Cayman Islands and married their tax accountants.

Edited February 2, 2015 by Chicog

[wabothai]

Cut throat politics !!! Both ways.

[chuckd]

Are these "shovel ready" jobs like the last stimulus plan?

If the prez wants shovel ready, he needs to approve the Keystone Pipeline.

[Chicog]

Are these "shovel ready" jobs like the last stimulus plan?

If the prez wants shovel ready, he needs to approve the Keystone Pipeline.

Yes, better to put Americans to work for a year building a pipeline for Canada and Big Oil than have them working long term on national infrastructure that benefits everyone.

[richard peters]

The official US $18 trillion national debt is actually $127 trillion, when all the forward projection expenditure is taken into account. Getting out of it by printing more money is not the answer, as interest has to be paid to the (non American Govt.) FED, so a major crash is probably unavoidable unless the Chinese intervene?

[Nemesis7]

And he wishes to be reelected again?

[Asiantravel]

How do Americans feel about a President that has such a relaxed attitude about handling other people's money?

[up-country_sinclair]

How do Americans feel about a President that has such a relaxed attitude about handling other people's money?

This American is pleased that the government is finally collecting the revenues it is owed by US corporations hiding profits overseas. I am old enough to remember a time when the actions of these corporations would have been considered treasonous while a war was being waged.

[Publicus]

Everyone experiences a trillion here and a trillion there. One trillion seconds for instance equals 32 years. People 64 years old have experienced two trillion seconds of time, life, with more to go yet.

Republicans in Washington and the the state capitals where they have public office will reinforce the Scrooge mentality as they slash from Prez Obama's budget items such as $500 million for a climate fund and $3 billion over the course of several years.of climate fund research and community damage assessment and assistance.

A $10 million increase for inspections and oversight by the Bureau of Land Management related to the new and rapid expansion of the fracking industry infrastructure and hiring.

There is the $4 billion Clean Power State Incentive Fund to help states go even further than the EPA plan that nationwide would require cuts in carbon emissions from existing power plants that reach 30 percent by 2030.

There are these items in Prez Obama's 2016 budget proposal and a lot more the 2016 Republican party nominee for prez is going to have to explain to the American people and voters.

Oh, did I mention permanently extending the 30 percent investment for solar-energy systems, and permanently reinstating the lapsed wind-energy production tax credit. These are two of several energy- and climate-related tax proposals, such as $2 billion in refundable credits for installing equipment that traps carbon emissions from power plants, to include credits for heavy-duty alternative-fueled vehicles.

[Scott]

An inflammatory, baiting post has been removed.

[beechguy]

How do Americans feel about a President that has such a relaxed attitude about handling other people's money?

This American is pleased that the government is finally collecting the revenues it is owed by US corporations hiding profits overseas. I am old enough to remember a time when the actions of these corporations would have been considered treasonous while a war was being waged.

Apparently, at this time they aren't owed, they are following the law. So, do you bypass your deductions and exemptions?

If it was such a problem, why didn't Obama deal with it in 2009, and 2010?

[beechguy]

Everyone experiences a trillion here and a trillion there. One trillion seconds for instance equals 32 years. People 64 years old have experienced two trillion seconds of time, life, with more to go yet.

Republicans in Washington and the the state capitals where they have public office will reinforce the Scrooge mentality as they slash from Prez Obama's budget items such as $500 million for a climate fund and $3 billion over the course of several years.of climate fund research and community damage assessment and assistance.

A $10 million increase for inspections and oversight by the Bureau of Land Management related to the new and rapid expansion of the fracking industry infrastructure and hiring.

There is the $4 billion Clean Power State Incentive Fund to help states go even further than the EPA plan that nationwide would require cuts in carbon emissions from existing power plants that reach 30 percent by 2030.

There are these items in Prez Obama's 2016 budget proposal and a lot more the 2016 Republican party nominee for prez is going to have to explain to the American people and voters.

Oh, did I mention permanently extending the 30 percent investment for solar-energy systems, and permanently reinstating the lapsed wind-energy production tax credit. These are two of several energy- and climate-related tax proposals, such as $2 billion in refundable credits for installing equipment that traps carbon emissions from power plants, to include credits for heavy-duty alternative-fueled vehicles.

They're going to explain it in one word, "Solyndra".

[Chicog]

Everyone experiences a trillion here and a trillion there. One trillion seconds for instance equals 32 years. People 64 years old have experienced two trillion seconds of time, life, with more to go yet.

Republicans in Washington and the the state capitals where they have public office will reinforce the Scrooge mentality as they slash from Prez Obama's budget items such as $500 million for a climate fund and $3 billion over the course of several years.of climate fund research and community damage assessment and assistance.

A $10 million increase for inspections and oversight by the Bureau of Land Management related to the new and rapid expansion of the fracking industry infrastructure and hiring.

There is the $4 billion Clean Power State Incentive Fund to help states go even further than the EPA plan that nationwide would require cuts in carbon emissions from existing power plants that reach 30 percent by 2030.

There are these items in Prez Obama's 2016 budget proposal and a lot more the 2016 Republican party nominee for prez is going to have to explain to the American people and voters.

Oh, did I mention permanently extending the 30 percent investment for solar-energy systems, and permanently reinstating the lapsed wind-energy production tax credit. These are two of several energy- and climate-related tax proposals, such as $2 billion in refundable credits for installing equipment that traps carbon emissions from power plants, to include credits for heavy-duty alternative-fueled vehicles.

They're going to explain it in one word, "Solyndra".

Ah bless, you keep churning up the old chestnuts.

Nov. 13 (Bloomberg) -- The U.S. expects to earn $5 billion to $6 billion from the federal program that funded flops including Solyndra LLC, bolstering President Barack Obama’s decision to back low-carbon technologies.

[DeaconJohn]

How do Americans feel about a President that has such a relaxed attitude about handling other people's money?

Most of us are too uninformed to feel anything at all.

[Publicus]

How do Americans feel about a President that has such a relaxed attitude about handling other people's money?

The 1% take very seriously their 100% tax exemptions, tax shelters, tax exclusions, deferrals, deductions and and more while keeping their money overseas to the tune of $2 Trillion.

Pres Obama takes all of this very seriously too and so do I and so do the great majority of Americans.

The tax code redistributes wealth from the middle class to the 1%.

Almost all citizens know the country needs reconstruction of its infrastructure. It's a needed and wise investment in business, transportation, jobs -- the whole nine yards.

[mikebike]

Hopefully this time around there will at least be some discussion generated rather than a bipartisan stalemate...