President Barack Obama has unveiled a massive $3.83 trillion budget on Monday that would set billions of dollars aside for job growth.
The Associated Press reports that the budget, which ups the national deficit to a record $1.56 trillion, aims to fix the U.S. economy.
The biggest move to tighten America’s belt is the president’s proposed three-year spending freeze starting in the 2011 budget year (October 1). Along with that, he seeks to impose higher taxes on the families earning more than $250,000 a year. Energy producers would also face increased taxes.
But as he raises taxes on the rich, the president would like to extend a tax break for middle-class Americans that would have run out at the end of the year. Couples would get an $800 credit, while individuals would get $400. The president wants the program to extend through 2011, and this proposal is not sitting well with conservatives.
Republicans have howled their opposition to higher taxes, contending that the predicted deficit is proof that Obama had let government spending get out of hand. The president’s camp, however, was quick to point out that the deficit was already over $1 trillion when he took office.
And despite the national debt, President Obama is still pushing for a $100 billion jobs measure that offers businesses a tax credit for hiring new employees.
"Having steered the economy back from the brink of a depression, the administration is committed to moving the nation from a recession to recovery by sparking job creation to get millions of Americans back to work," the Obama administration stated in a press release.
— Sonya Eskridge