Obama to outline $1.3 trillion in spending cuts in new budget outline
President Barack Obama will announce his fiscal 2018 budget on Wednesday, calling for $1 trillion in tax cuts and $1,000 for every American to purchase health insurance on the new marketplaces set up under the Affordable Care Act.
The president will also propose an increase in military spending and other spending measures.
The spending plan would cost the government $1 billion in 2018, and the new administration said it would also seek to reduce the federal debt by $1tn over 10 years.
The new spending blueprint would raise taxes on the rich and would add $1tr to the national debt.
The Republican-led Congress is likely to pass the spending plan without changes to the tax code, a decision that could affect the country’s long-term economic outlook.
The White House is seeking to make the spending blueprint a priority in the coming months as lawmakers return to Washington after recess.
The budget blueprint would cut federal spending by $3.1tn, or about a fifth of the federal budget.
It would also increase defense spending by about $1bn.
It would also reduce the deficit by $100bn, or 13 per cent of GDP, by 2023.
More: Obama to outline spending cuts in new budget President Barack Obama on Wednesday will outline his budget for fiscal 2018, which is expected to call for $600bn in spending reductions, including $500bn for the military, $300bn for Medicare, $200bn for social security and $20bn for infrastructure spending.
He also said the government would seek to lower the debt by an additional $1 Trillion, or around $1Trillion, over 10 year period.
“We’re going to keep cutting taxes for the middle class and the working families, and we’re going a step further and doubling down on infrastructure spending,” Mr Obama said in a televised address to the nation.
“That’s the only way to keep our country safe.”
Mr Obama will be joined by Vice President Joe Biden, House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell at a White House press conference on Wednesday afternoon.
House Speaker Nancy Pence will also hold a news conference later in the day.
President Donald Trump said he would unveil the new spending plan at a later date.
White House officials said the budget would be announced on Wednesday morning in the White House briefing room, but did not give an exact time.
Mr Trump will also outline $4.5tn in infrastructure spending, which includes $4bn for roads, bridges and other infrastructure.
Republicans are expected to vote on the budget, but Democrats have vowed to block the proposal, which would cut funding for a number of programmes for the poor and middle class, including Medicaid and Medicare.
A spokesman for Mr Obama did not immediately respond to a request for comment.
On Monday, the Senate approved a spending package for the fiscal year that begins on October 1, but a final budget is expected this week.
Republican leaders in the House have promised to block any spending plan that does not include a $1B tax hike on the wealthy.
Senate Republicans are expected on Tuesday to approve a new round of spending bills for the year that ends in October.
In the House, Mr Trump’s proposed budget proposal will likely be blocked by Democrats, who will also be voting on it, but Mr McConnell said the president would be willing to work with Democrats on some tax and entitlement reforms.
Democrats and Republicans are set to vote to pass a $5.9tn budget in the next few days, and Mr McConnell and his allies are expected to have a harder time securing votes to block spending bills.
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