US President Barack Obama presented a budget proposal for fiscal 2013 to the Congress, Reuters informs. Obama who is determined to be reelected a second term in autumn 2012 is proposing to raise taxes for millionaires and pour milliards of dollars in infrastructure projects.
Obama’s budget postpones cutting deficit until the US economy fully recovers. The US President’s projected budget deficit for 2013 is 900 USD billion, which is 5.5% of GDP versus 1.33 trillion (8.5% of GDP) in 2012. Within 10 years to come the US budget deficit is planned to be reduced by 4 USD trillion.
There is no guarantee the US Congress adopts the Obama’s budget plan; in 2011 it was partially rejected and the USA had a narrow escape from a budget crisis. However, while Republicans favour the rich, Obama might win more voters as he seems to defend their interests with his budget proposal: he suggests that Americans with incomes over 1 USD million pay a 30% tax.
Republicans controlling the House of Representatives already slammed Obama’s budget plan. They insist that higher taxes will result in fewer jobs and will hardly foster reduction of uncontrollably expanding public debt.