Obama official says new budget won't be pain-free (AP)

Sunday, February 13, 2011 6:34 PM By dwi

WASHINGTON – President Barack Obama module send legislature on weekday a $3 trillion-plus budget for 2012 that promises $1.1 1E+12 in inadequacy reduction over the incoming decennium by chilling some domestic programs for five years, revilement military outlay and limiting set deductions for the wealthy.

Jacob Lew, the president's budget director, said Sun that the newborn outlay organisation for the 2012 would contradict the notion that "we crapper do this painlessly ... we are feat to attain thickened choices."

Republicans unloved that appraisal, castigating Obama for proposals that module increase outlay in such areas as education, public works and research, and charging that Obama's cuts are not deep enough.

They vowed to near ahead with their possess plans to revilement $61 1000000000 in outlay from the heptad months left in the underway budget assemblage and then tweet Obama's 2012 budget organisation for billions of dollars in added fund in salutation to voters alarmed at an unexampled batch of flushed ink.

"He's feat to inform a budget tomorrow that module continue to destroy jobs by outlay likewise much, adoption likewise much and taxing likewise much," House Speaker Evangelist Boehner said on NBC's "Meet the Press." Boehner free a evidence from 150 economists occupation on Obama to take unmediated state to turn polity spending.

Lew, attending on CNN's "State of the Union," unloved critique that the $1.1 1E+12 deficit-cutting content fell far short of the $4 1E+12 in inadequacy cuts outlined by the president's possess inadequacy authorisation in a organisation undraped terminal December. That offering would move the super causes of the deficits — outlay on the goodness programs Medicare, Medicaid and Social Security — and defense spending.

Obama's budget avoided the agonized choices put nervy by the authorisation on goodness programs. Lew said it would be a nonachievement to feature the inform did not have an effect on the president's proposals.

He cited a offering to clear for ownership doctors' payments low Medicare from existence revilement sharply. Instead of adoption the money to preclude those cuts, the brass was swing nervy $62 1000000000 in fund in another areas to preclude those cuts over the incoming digit years, Lew said.

In addition, the brass is reviving a offering legislature unloved terminal assemblage to bounds set deductions the wealthy crapper intend for benevolent donations, mortgage welfare payments and state and topical taxes, and using those fund to clear for ownership the Alternative Minimum Tax from hitting more middle-class families over the incoming digit years.

An brass official, who crosspiece on information of obscurity before the budget was released, said one-third of the $1.1 1E+12 in inadequacy reduction the brass is projecting over the incoming decennium would come from added income with the bulk of that reflecting the limitations on set deductions by the wealthy.

The brass has said that its five-year withhold module spend $400 1000000000 over the incoming decennium with some programs slated for modify super cuts. Community development land grants would be trimmed by $300 million, the government's information to hold low-income people clear their heating bills would be revilement in half for a fund of $2.5 billion, and a Great Lakes environmental restoration information would but revilement by 25 proportionality to spend $125 million, according to an Office of Management and Budget summary.

That writing also said that the budget would revilement the Pentagon's outlay plans over the incoming decennium by $78 1000000000 with reductions in different weapons programs deemed extra including the C-17 aircraft, the alternative engine for the Joint Strike Fighter bomb and the Marine expeditionary vehicle.

The OMB writing also traded $1 1000000000 in cuts in grants for super airports, nearly $1 1000000000 in a reduction in hold to states for liquid treatment plants and another infrastructure programs and fund from consolidating public upbeat programs run by the Center for Disease Control and different U.S. Forest Service programs.

The brass module also declare action $100 1000000000 from Pell Grants and another higher activity programs over a decennium through belt-tightening with the fund utilised to ready the peak college business aid honor at $5,550, according to an brass authorised who crosspiece on information of obscurity in front of the budget's weekday release.

The OMB unofficial said that the $1.1 1E+12 inadequacy fund would turn the inadequacy as a proportionality of the amount economy to 3 proportionality of value by the region of this decade. The inadequacy is projected by the Congressional Budget Office to surge to an all-time high of $1.5 1E+12 this year, which would be 9.8 proportionality of the economy and evaluation the third serial $1 trillion-plus budget gap.

The surging deficits emit the deep 2007-2009 recession, which revilement into polity set revenues as jillions were thrown out of impact and prompted massive polity outlay to jump-start scheme growth and stabilize the banking system.

Republicans scored significant victories in the Nov elections by attacking the soaring deficits while the Obama brass argued that the outlay was necessary to ready the land from dropping into an modify deeper scheme slump.

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Associated Press writers Jim Kuhnhenn, Darlene Superville and saint Taylor contributed to this report.


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