ECONOMY -- February 1, 2010 at 8:48 AM ET
Monday's Headlines: Obama to Submit $3.83 Trillion Budget
President Barack Obama plans to send Congress a $3.83 trillion budget that calls for more money to fight high unemployment and cuts in spending for government programs to reduce a projected record deficit this year.
President Obama's plan would raise taxes on the nation's largest banks, energy producers and families making more than $250,000. In addition, the president proposes a three-year budget freeze on a variety of programs outside of the military and homeland security.
The Obama administration's budget request, set for release Monday morning, was previewed for reporters late Sunday.
The Obama administration expects the deficit for this year to rise to a record-breaking $1.56 trillion, topping last year's $1.41 trillion gap, which was also a record high. The deficit is expected to fall to $706 billion in 2014 before beginning to rise again, hitting $1.003 trillion in fiscal 2020, the Wall Street Journal reports. Over the next 10 years the deficit would total $8.532 trillion.
Echoing his pledge in the State of the Union address, the president proposes a $100 billion jobs measure that would provide tax breaks to encourage businesses to boost hiring. He would also increase government spending on infrastructure and energy projects.
"This is a budget that makes tough choices while investing in initiatives to create jobs and help reduce the economic pressures facing the middle class," White House spokesman Dan Pfeiffer said in a briefing for reporters.
In addition to new spending on the economy, the plan calls for $250 million to be set aside for the purchase of an Illinois prison that had been identified as a possible home for detainees from Guantanamo Bay, the Washington Post reports. The budget also calls for an additional $33 billion in war funding this year and a total budget of $160 billion for the wars in Iraq and Afghanistan next year.
"I think the president's proposal on freezing non-security domestic spending is a good first step," House Republican leader John Boehner of Ohio said Sunday on NBC's "Meet the Press." "But it's only $15 billion for each of the next three years. I think we can do much better than that. I don't think any agency of the federal government should be exempt from rooting out wasteful spending or unnecessary spending."
Toyota Motor Corp. said Monday its dealers should get parts to fix a sticky gas pedal problem by the end this week as it tries to bring an end to a recall that has affected 4.2 million vehicles worldwide.
The company said in a statement that it has begun shipping parts and is training dealers on the repairs. Some dealers will stay open 24 hours to fix the 2.3 million cars and trucks affected by the recall in the United States.
A suicide bomber walking among Shiite pilgrims in Baghdad detonated an explosives belt on Monday, killing at least 46 people and wounding more than 122, officials said. The bombing raises fears of an escalation of attacks as hundreds of thousands of Shiites head by Friday to the southern holy city of Karbala to mark the end of 40 days of mourning following the anniversary of the death Imam Hussein, a revered Shiite figure.