Obama Budget
Charles Dharapak/AP
By Jeff Mason, Mark Felsenthal and David Lawder

WASHINGTON -- President Barack Obama proposed new tax credits and job-training programs for U.S. workers on Tuesday in a 2015 budget that highlights stark differences with Republicans, who favor a reduced government role in promoting economic opportunity.

The election-year blueprint is all but certain to be rejected by the Republican-controlled House of Representatives and stands little chance of passage.

But it sets out the Democratic president's policy priorities ahead of November congressional elections, in which his party hopes to keep control of the U.S. Senate and avoid losing ground in the House.

The blueprint for the 2015 fiscal year that begins on Oct. 1 would increase tax credits for the working poor, boost spending on roads and bridges and expand early childhood education.

Obama's proposal signals a shift away from last year's emphasis on deficit cutting to a greater focus on fighting poverty, a goal the president is highlighting as he faces less than three years left in office.

The debate over Obama's controversial health care reform law is likely to feature prominently in the elections, but poverty reduction and Americans' slow recovery from the 2007-2009 recession are also likely to be major themes.

House Budget Committee Chairman Paul Ryan, a potential Republican presidential contender in 2016, argued in a report on Monday that the government had barely made a dent in combating poverty over the past 50 years despite massive spending.

Obama and Ryan disagree on the role government should play in poverty reduction, but they both back the earned income tax credit, an anti-poverty measure that is meant to encourage low-income Americans to continue working.

Obama's budget proposes expanding the program to cover some 13.5 million people who don't have children. It would also make the program available to younger workers who aren't currently eligible.

"The EITC for families with children lifts millions out of poverty each year and helps about half of all parents at some point in their lives," Obama wrote in his budget document.
"But as a number of prominent policymakers, both progressive and conservative, have noted, the EITC does not do enough for single workers who do not have kids."

The expansion, which would cost $60 billion, would be funded by closing loopholes such as the tax break for "carried interest," profits earned by wealthy investors who run private equity and other funds.

Obama has long sought to end that tax break, which allows financiers to treat such income as capital gains, making it subject to a tax rate of only 20 percent, instead of the nearly 40 percent top rate on ordinary income paid by the highest earners.

Representative Dave Camp, the Republican chairman of the powerful House Ways and Means Committee, also proposed last month to "clean up" the carried interest deduction, but tax reform isn't expected to get traction in Congress this year.

Savings, No Olive Branch

Obama will unveil the document during a visit to a local elementary school, giving him a chance to highlight the proposal's emphasis on boosting funding for education, which has gotten little support from opposition lawmakers.

The White House signaled last month that its new budget wouldn't extend the olive branch to Republicans that was offered in its proposal a year ago.

Obama dropped a suggestion to change how the government calculates inflation for Social Security and other federal benefits that could have led to income drops for older Americans.

The proposed cost-of-living change, which was unpopular with Obama's Democratic allies, was meant to show Republicans the president was serious about deficit reduction. White House officials said Obama abandoned it after Republicans declined to offer concessions of their own.

Overall, Obama's proposed budget for 2015 would spend $3.9 trillion, leading to a $564 billion budget deficit, or 3.1 percent of the nation's gross domestic product. That would be down from a $649 billion deficit, or 3.7 percent of GDP, in fiscal year 2014.


Cold Hard Facts About the President's Budget Plan

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bamy.demsjail2014

OBAMY PLAYS GOLF WHILE "BENGHAZI" BURNS N OUR 4 AMERICANS ARE BEING SLAUGHTERED N BURNT TO DEATH ~~>BAMY . HILLARY WILL BOTH BE HELD ACCOUNTABLE FOR THEIR CRIMES. !!

March 04 2014 at 9:44 AM Report abuse -1 rate up rate down Reply
byebyeteaparty

dickens.cider other screen name bamy.demsjail2014

March 04 2014 at 9:40 AM Report abuse +2 rate up rate down Reply
bamy.demsjail2014

DONT WORRY BOUT NO BUDGET NOW ,CAUSE YOU NEVER HAD A CAUSE FOR ONE IN THE LAST 5 YEARS NOW ~~>JUST START PACKIN N GET THE FARK OUT YOUR A USELESS N WORTHLESS SLUG. ! !!!!!

March 04 2014 at 9:38 AM Report abuse -2 rate up rate down Reply
philipsplastics

"Obama 2015 Budget Focused on Middle Class, Poor"...turn as many "Middle Class" into "Poor" as possible!!!

March 04 2014 at 9:37 AM Report abuse +1 rate up rate down Reply
bamy.demsjail2014

YO !! BAMY ..BUBBAS MOVERS ARE AT THE FRONT DOOR OF THE WHITE HOUSE N WANT TO KNOW IF YOUR SHAT IS PACKED ,CAUSE "'YOUR OUTTA HEREEEE N DONT LET THE DOOR HIT YOU IN THE ARSE. !!!!

March 04 2014 at 9:35 AM Report abuse -2 rate up rate down Reply
bamy.demsjail2014

OBAMITS ECONOMY~"BENGHAZI"~"SPYING"~"BENGHAZI"~"SPYING"

March 04 2014 at 9:26 AM Report abuse -3 rate up rate down Reply
bamy.demsjail2014

obamit n hillary will be in jail in 2014 ,as impeachment process is on its way as we speak. !!BYE~BYE BAMY IN 2014. !!

March 04 2014 at 9:13 AM Report abuse -3 rate up rate down Reply
2 replies to bamy.demsjail2014's comment
byebyeteaparty

My what big dreams you have, for a little pinhead.

March 04 2014 at 9:18 AM Report abuse +2 rate up rate down Reply
k4jlp

Take your meds please.....

March 04 2014 at 10:06 AM Report abuse +1 rate up rate down Reply
unitedpaintings

I see Barthold is on a roll with 2 of his user names. LOL

March 04 2014 at 8:54 AM Report abuse rate up rate down Reply
k4jlp

Look for serious pushback from the Republicans, they don't want anything from Obama that is good for the middle class to pass, we all know who they represent. If you want to help the middle class, get a handle on energy, food, insurance and healthcare prices. Put some money back in our pockets, give us some breathing room, allow us to take a damn vacation at least once a year. It does not take a rocket scientist to figure this out, just PROPER LEADERSHIP IN CONGRESS.

March 04 2014 at 7:14 AM Report abuse +1 rate up rate down Reply