US President Barack Obama proposed a $3.77 trillion budget on Wednesday that combines controversial cuts to social safety net programmes with tax increases on the rich in a package the White House hopes will start deficit-reduction talks.
The proposal, an annual attempt to identify and fund the president's policy desires, is unlikely ever to become law. Its deficit-cutting measures mirror an outline Obama put forward last year that was rejected by John Boehner, the Republican speaker of the House of Representatives. Obama's budget included cuts in social security, pension programme for retirees, and Medicare, health insurance plan for seniors.
The budget predicts the deficit would fall to $744 billion in 2014, or 4.4% of GDP, from $973 billion in 2013. It aims to achieve $1.8 trillion in deficit reduction over 10 years. Added to $2.5 trillion in past deficit cuts, the reduction would be over the $4 trillion both parties said would be acceptable.