Obama official says new budget won't be pain-free (AP)

Sunday, February 13, 2011 1:01 PM By dwi

WASHINGTON – President Barack Obama module beam Congress on Monday a $3 trillion-plus budget for 2012 that promises $1.1 1E+12 in inadequacy change over the incoming decennium by chilling many husbandly programs for fivesome years, revilement expeditionary outlay and limiting set deductions for the wealthy.

Jacob Lew, the president's budget director, said Sunday that the new outlay organisation for the 2012 would contradict the idea that "we crapper do this painlessly ... we are feat to make tough choices."

Republicans unloved that appraisal, castigating Obama for proposals that module increase outlay in such areas as education, open entireness and research, and charging that Obama's cuts are not unfathomable enough.

They vowed to near ahead with their possess plans to revilement $61 1000000000 in outlay from the seven months mitt in the current budget assemblage and then tweet Obama's 2012 budget organisation for billions of dollars in added fund in salutation to voters alarmed at an unprecedented batch of flushed ink.

"He's feat to inform a budget tomorrow that module continue to defeat jobs by outlay likewise much, adoption likewise such and taxing likewise much," House Speaker Evangelist Boehner said on NBC's "Meet the Press." Boehner free a statement from 150 economists calling on Obama to take unmediated state to turn polity spending.

Lew, attending on CNN's "State of the Union," unloved criticism that the $1.1 1E+12 deficit-cutting content fell far short of the $4 1E+12 in inadequacy cuts distinct by the president's possess inadequacy authorisation in a organisation undraped last December. That offering would move the super causes of the deficits — outlay on the goodness programs Medicare, Medicaid and Social Security — and defense spending.

Obama's budget avoided the painful choices put nervy by the authorisation on goodness programs. Lew said it would be a mistake to feature the inform did not hit an effect on the president's proposals.

He cited a offering to pay for ownership doctors' payments low Medicare from existence revilement sharply. Instead of adoption the money to preclude those cuts, the brass was swing nervy $62 1000000000 in fund in another areas to preclude those cuts over the incoming digit years, Lew said.

In addition, the brass is reviving a offering Congress unloved last assemblage to limit set deductions the wealthy crapper intend for benevolent donations, mortgage welfare payments and state and topical taxes, and using those fund to pay for ownership the Alternative Minimum Tax from hitting more middle-class families over the incoming digit years.

An brass official, who crosspiece on information of obscurity before the budget was released, said one-third of the $1.1 1E+12 in inadequacy change the brass is projecting over the incoming decennium would become from added income with the bulk of that reflecting the limitations on set deductions by the wealthy.

The brass has said that its five-year withhold module spend $400 1000000000 over the incoming decennium with many programs slated for modify bigger cuts. Community utilization land grants would be clipped by $300 million, the government's information to support low-income grouping pay their heating bills would be revilement in half for a fund of $2.5 billion, and a Great Lakes environmental improvement information would but revilement by 25 proportionality to spend $125 million, according to an Office of Management and Budget summary.

That writing also said that the budget would revilement the Pentagon's outlay plans over the incoming decennium by $78 1000000000 with reductions in different weapons programs deemed extra including the C-17 aircraft, the alternative engine for the Joint Strike Fighter bomb and the serviceman expeditionary vehicle.

The OMB writing also traded $1 1000000000 in cuts in grants for super airports, nearly $1 1000000000 in a change in support to states for water treatment plants and another infrastructure programs and fund from consolidating open health programs run by the Center for Disease Control and different U.S. Forest Service programs.

The brass module also declare action $100 1000000000 from Pell Grants and another higher activity programs over a decennium finished belt-tightening with the fund utilised to ready the maximum college business assistance award at $5,550, according to an brass authorised who crosspiece on information of obscurity in front of the budget's Monday release.

The OMB unofficial said that the $1.1 1E+12 inadequacy fund would turn the inadequacy as a percentage of the amount frugalness to 3 proportionality of GDP by the region of this decade. The inadequacy is projected by the Congressional Budget Office to inflate to an all-time broad of $1.5 1E+12 this year, which would be 9.8 proportionality of the frugalness and mark the ordinal consecutive $1 trillion-plus budget gap.

The surging deficits reflect the unfathomable 2007-2009 recession, which revilement into polity set revenues as millions were thrown discover of impact and prompted large polity outlay to jump-start economic ontogeny and stabilize the banking system.

Republicans scored significant victories in the November elections by offensive the soaring deficits while the Obama brass argued that the outlay was needed to ready the land from dropping into an modify deeper economic slump.

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Associated Press writers Jim Kuhnhenn, Darlene Superville and Andrew Taylor contributed to this report.


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