WASHINGTON — With ambitious plans to change health care, energy, farm payments, taxes and more, President Barack Obama’s budget gives congressional Democrats goals to reach for. And highlights political targets for Republicans to aim at.
“Our work is well cut out for us,” House Speaker Nancy Pelosi, D-Calif., said as she praised a “wonderful blueprint” from the administration that looks beyond reviving a weak economy and restoring order to the credit markets.
While Pelosi focused on calls for expanded health care, environmentally friendlier energy policy and improved education, Republicans saw higher taxes, soaring government spending and record federal deficits in the budget released Thursday.
“I have serious concerns with this budget, which demands hardworking American families and job creators turn over more of their hard-earned money to the government to pay for unprecedented spending increases,” said Sen. Mitch McConnell, R-Ky., the Senate Republican leader.
Even Senate Budget Committee chairman Kent Conrad, D-N.D., had misgivings. Conrad said he worried about the budget’s long-term outlook, which sees deficits fall until 2013 and then begin to rise again.
“I think that requires additional work,” he said Friday on CNBC.
And he predicted trouble for Obama’s plan to limit itemized deductions for individuals earning more than $200,000 and couples earning more than $250,000. “I would put that high on the list of things that will be given a thorough scrubbing and may well not survive,” he said.
Democratic leaders, who control both houses of Congress, have pledged to begin work promptly on translating Obama’s blueprint into legislation.
Pelosi told reporters that majority Democrats will have a nonbinding budget blueprint ready for a vote next month, detailing targets for spending and taxes. Senate action would follow, and agreement on a compromise would clear the way for routine spending bills that Democrats will use to underscore differences between their priorities and those of the Republicans.
Obama also called for higher taxes on income and investment gains on individuals earning more than $200,000 and couples who make $250,000 and above.
Changes to income tax under Obama’s budget
Here is how President Barack Obama’s income-tax proposals, detailed in his budget released Thursday, would affect typical families at various income levels. Figures are in dollars. Negative tax figures mean those families would owe no federal income tax and would instead receive refunds.
$35,000 Single, no childrenTaxes: $3,000
Change: -$400
Married, two childrenTaxes: -$4,100
Change: -$1,200
$50,000 Single, no childrenTaxes: $6,000
Change: -$400
Married, two childrenTaxes: -$40
Change: -$800
$150,000 Single, no childrenTaxes: $26,200
Change: -$400
Married, two* childrenTaxes: $15,500
Change: -$6,800
$300,000 Single, no childrenTaxes: $73,500
Change: $5,000
Married, two childrenTaxes: $60,200
Change: $1,100
$500,000 Single, no childrenTaxes: $140,700
Change: $19,200
Married, two childrenTaxes: $131,700
Change: $11,300
