WASHINGTON — President Obama’s $4.1 trillion budget proposal to Congress combines ambitious election-year proposals unlikely to be passed by a Republican Congress with more achievable proposals for cancer research, drug treatment and cybersecurity.
“The budget that we’re releasing today reflects my priorities and the priorities that I believe will help advance security and prosperity in America for many years to come,” Obama told reporters at the White House. “It adheres to last year’s bipartisan budget agreement. It drives down the deficit. It includes smart savings on health care, immigration, tax reform.”
But that vision will come at a cost. Budget deficits will grow to 2.8% of the economy, with a cumulative effect of increasing the national debt from $19 trillion to $27.4 trillion over the next decade, according to the Office of Management and Budget.
And although the Obama administration expects the debt to remain relatively stable as a share of the economy, that projection is based on a set of assumptions: The economy will continue to grow by about 2.5% over the next decade. Congress will enact a $10-a-barrel tax on fuel oil, raising $319 billion over 10 years. Congress will pass immigration reform, resulting in another $170 billion in new revenue over the next decade. And off-budget war spending will decrease by $636 billion through 2026.
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