President Obama’s budget is being sent to Congress Monday — full of the president’s “middle class economics” priorities he laid out in the State of the Union.
Budgets are not much more than political documents, and this one is no different. It’s going nowhere in the Republican-led House and Senate, but it will add numbers to those priorities.
Showing what a priority fully funding the Department of Homeland Security is, Obama will deliver a speech at 11:55 am EST on the budget from DHS. Here’s a breakdown of some of what’s in it:
- $4 trillion total cost
- Budget would not be balanced, but $474 billion deficit in 2016, similar to what it is today. The deficit would be less than $500 billion through 2018 and go up to $687 billion by 2025.
- Through tax increases and spending cuts, though, the White House says it would cut the deficit overall $1.8 trillion over the next 10 years.
- Tax increases on higher-income earners and bank fees would raise $320 billion to pay for middle-class tax breaks.
- Capital gains increase on couples making $500,000 a year plus from 23.8 percent to 25 percent.
- Estate tax on securities
- .07 percent fee on the 100 largest banks
- Up to $500 credit for dual-income households
- Up to $3,000 credit to help pay for child care for each child under 5 (which could cost up to $80 billion)
- $561 billion for the Pentagon, $38 billion above the spending cap limit known as the “sequester”; almost as much for domestic programs.
- $478 billion in infrastructure paid for through a one-time 14 percent tax on business profits made overseas.
- $60 billion over 10 years years to pay for community college (states pay an additional $20 billion toward free community college.)
- $3 billion for Science, Technology, Engineering and Math education.
- $1 billion toward Central American political and economic development.
- $750 million to the Department of Education for a pre-K development program, moving toward universal pre-K. That’s up from $250 million.