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USANews版 - In Budget, Obama’s Unfettered Case for Spreading the Wealth
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话题: obama话题: budget话题: mr话题: president
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WASHINGTON — President Obama presented a budget on Monday that is more
utopian vision than pragmatic blueprint. It proposes a politically
improbable reshaping of the tax code and generous new social spending
initiatives that would shift resources from the wealthy to the middle class.
Absent from the plan is any pretense of trying to address the main drivers
of the long-term debt — Social Security and Medicare — a quest that has
long divided both parties and ultimately proved impossible. The document
instead indicates that Mr. Obama, after years of being hemmed in on his
fiscal priorities because of politics and balance sheets, feels newly free
to outline an ambitious set of goals that will set the terms of a debate
between Democrats and Republicans and shape the 2016 presidential election.
Continue reading the main story
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“It’s a visionary document and basically says, ‘You’re with me or you’
re not,’ and we can have big philosophical arguments about the role of
government, and perhaps in 2016 we will,” said Jared Bernstein, a senior
fellow at the Center on Budget and Policy Priorities and a former top
economic adviser to Vice President Joseph R. Biden Jr.
Continue reading the main story
Graphic
Obama’s Priorities, in Budget Form
The president’s 2016 represents his policy aspirations as he begins
negotiations with Republicans.
OPEN Graphic
The budget reflects the degree to which Mr. Obama emerged from last year’s
midterm congressional election losses determined to dig in — rather than
scale back — on his belief that the government should play a fundamental
role in spreading economic prosperity throughout the country.
Badly losing the midterm elections “has led them to get outside of a pretty
narrow box they were trapped in, and they’re thinking far more broadly and
creatively about ways in which policy can help reconnect economic growth
and middle-class prosperity,” Mr. Bernstein said. “They’re framing a
debate with bigger fish in mind than an annual budget. They’re thinking
pretty energetically about what ought to be done, versus what can be done.”
The result is that Republicans have dismissed Mr. Obama’s budget as dead on
arrival, branding it as a tired retread of the job-killing, big-spending
policies that he and his party have long favored.
“Today President Obama laid out a plan for more taxes, more spending, and
more of the Washington gridlock that has failed middle-class families,”
Speaker John A. Boehner, Republican of Ohio, said on Monday. “It may be
Groundhog Day, but the American people can’t afford a repeat of the same
old top-down policies of the past.”
But several potential contenders for the 2016 Republican presidential
nomination — including former Gov. Jeb Bush of Florida, Senator Ted Cruz of
Texas, Senator Rand Paul of Kentucky and Senator Marco Rubio of Florida —
have begun to respond to Mr. Obama’s emphasis on wage stagnation and income
inequality by talking more publicly about the issue.
At the heart of Mr. Obama’s budget is what the president calls “middle-
class economics” — plans to help middle-income earners afford necessities
such as education and child care and bolster their skills, and to pour
federal money into building roads and bridges.
Continue reading the main story
Continue reading the main story
To pay for such initiatives, including free community college and more
generous subsidies for child care and tax credits for education, Mr. Obama
has outlined a nearly $1 trillion raft of tax proposals that would hit the
wealthy and large financial institutions over the next decade.
There are some glimpses of potential common ground in the blueprint,
including a proposal for the kind of corporate tax overhaul and
infrastructure plan for which Republicans have previously expressed support.
A six-year $478 billion plan to build and improve transit, roads and
bridges across the country could open the bidding for negotiations on such
an initiative. But Mr. Obama’s proposal for paying for it — a one-time
requirement that companies pay a 14 percent tax on an estimated $2.1
trillion in profits parked overseas, and a future rate of 19 percent on such
earnings — is unlikely to be embraced by Republicans.
Mr. Obama’s plan also reflects the opening bid in what promises to be a
spirited negotiation with Republicans over how to replace strict spending
caps, known as sequestration, on domestic and military programs. The
president is proposing to add $38 billion for the military and $37 billion
for domestic programs under Congress’s discretion.
Yet the budget confirms that for Mr. Obama, the era of searching for a “
grand bargain” with Republicans on entitlements and spending — an exercise
that alienated liberal Democrats who were loath to consider any measure to
rein in Medicare and Social Security — is over.
Entitlement programs would rise from 13.2 percent of the economy this year
to 14.8 percent in 2025, while domestic and military spending would fall
from 6.4 percent to 4.5 over a decade.
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话题: obama话题: budget话题: mr话题: president