Obama unveils record $3.83 trillion budget; pledges to cut deficit - Hawaii News Now - KGMB and KHNL

Obama unveils record $3.83 trillion budget; pledges to cut deficit

President Barack Obama President Barack Obama
Senate Minority Leader Mitch McConnell Senate Minority Leader Mitch McConnell

by Steve Handelsman

WASHINGTON (NBC) - The Obama budget hit Capitol Hill with a record splash of red ink. Republicans are calling it reckless. Democrats say it's reasonable, given that less tax revenue is coming in.

It contains $3.8 trillion in proposed spending, $1.6 trillion more than the revenue that will come in, and a deficit that's 10.6% of our whole economy.

No choice, said President Obama. And no quick fix.

"We won't be able to bring down this deficit overnight, given that the recovery is still taking hold and families across the country still need help. We will continue, for example, to do what it takes to create jobs," the President said Monday morning.

There's $100 billion for job creation, and cuts in 120 non essential programs, like space exploration. There are no cuts in Iraq or Afghanistan. Social Security, Medicare and Medicaid remain off the table.

"That's also why we are restoring pay-as-you-go. The simple rule that says Congress can't spend a dime without cutting a dime elsewhere."

As promised, the president would reverse the Bush tax cuts for the wealthy

"I welcome any idea from Democrats and Republicans. What I will not welcome, what I reject, is the same old grandstanding when the cameras are on and the same irresponsible budget policies when the cameras are off," Obama added.

Republicans call the Obama plan irresponsible.

"This budget is more spending, more taxes and more debt. Anyone listening to the American people knows this isn't what they support," asserted Senate Minority Leader Mitch McConnell (R-Kentucky).

Now comes a big budget battle.

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