US President Barack Obama. REUTERS/Jonathan Ernst
US President Barack Obama's fiscal 2015 budget aims to
keep alive hopes for major deficit reduction by claiming that
proposed tax hikes and spending proposals, coupled with
previous actions, will lead to $5.3 trillion in budget savings
over 10 years.
The budget request, most of which will be ignored by
Congress, proposes savings of about $1.4 trillion over the
2015-2024 period from healthcare savings, closure of tax
breaks for millionaires, and immigration reform.
It estimates that increased investments in infrastructure,
education and an expanded tax credit for the working poor
will reduce deficits by another $127 billion over the decade,
and passage of immigration reform will kick in another $158
In total, the Obama budget shows annual deficits staying in
the $400 billion to $500 billion range for much of the
decade, reaching a benign 1.6 percent of gross domestic
product in 2024, despite the rising cost of caring for the
rapidly retiring Baby Boom generation.
The outlook from the non-partisan Congressional Budget Office
looks far worse based on current tax and spending law,
showing deficits that climb back to $1.1 trillion by 2024, or
4 percent of GDP, as more people choose to leave the