Obama budget would shrink deficits by $1.2 trillion over 10 years: CBO

Source: Reuters

President Barack Obama's fiscal 2016 budget proposal would shrink U.S. deficits by $1.232 trillion over 10 years compared to those expected under current tax and spending laws, the Congressional Budget Office said on Thursday.

The deficit reduction, although smaller than that claimed by the White House, is largely due to Obama's proposals for higher taxes on the wealthy, his plans for lower spending on military operations in Afghanistan and net savings from proposed immigration reforms, the CBO said.

For fiscal 2016, the first full year under Obama's fiscal blueprint if Congress were to adopt it, the deficit would fall to $380 billion from $455 billion, the CBO's latest forecast under current laws.

But Congress routinely casts aside the president's budget request and passes its own budget and spending bills. Next week, Republican-controlled budget committees in the House and Senate intend to unveil their own proposals for budgets that eliminate deficits within 10 years, with deep spending cuts expected for some federal benefits programs.

Read more: http://www.reuters.com/article/2015/03/12/us-usa-budget-obama-idUSKBN0M81WP20150312