Obama unveils $3.73 trillion budget for 2012
President Barack Obama is sending Congress a $3.73 trillion spending blueprint that pledges $1.1 trillion in deficit savings over the next decade through spending cuts and tax increases.
Obama’s new budget projects that the deficit for the current year will surge to an all-time high of $1.65 trillion. For 2012, the administration sees the imbalance declining to $1.1 trillion, giving the country a record four straight years of $1 trillion-plus deficits.
Senior administration officials said that Obama would achieve two-thirds of his projected $1.1 trillion in deficit savings through spending cuts including a five-year freeze on many domestic programs.
The other one-third of the savings would come from tax increases, including limiting tax deductions for high income taxpayers, a proposal Obama put forward last year that was rejected in Congress.
The Obama budget recommendation, which is certain to be changed by Congress, would spend $3.73 trillion in the 2012 budget year, which begins Oct. 1, a reduction of 2.4 percent from what Obama projects will be spent in the current budget year.
The Obama plan would fall far short of the $4 trillion in deficit cuts recommended in a December report by his deficit commission. That panel said that real progress on the deficit cannot be made without tackling the government’s big three entitlement programs—Medicare, Medicaid, and Social Security—and defense spending.
Republicans called Obama’s efforts too timid and want spending frozen at 2008 levels before efforts to fight a deep recession boosted spending in the past two years. They are scheduled to begin debating on Tuesday a proposal that would trim spending by $61 billion for the seven months left in the current budget year, which ends Sept. 30. They also have vowed to push for tougher cuts in 2012 and future years.
While cutting many programs, the new budget does propose spending increases in selected areas of education, biomedical research, energy efficiency, high-speed rail, and other areas.
The Associated Press contributed to this report.

















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back to top41 Comments to “Obama unveils $3.73 trillion budget for 2012”
“That panel said that real progress on the deficit cannot be made without tackling the government’s big three entitlement programs—Medicare, Medicaid, and Social Security—and defense spending.”
Are there any grown-ups in Washington? They need to take charge of this mess, and make some hard decisions. We are in real danger of losing the dollar as the global standard of currency.
in addition, if we continue to print money and raise taxes we’ll soon have runaway inflation and burn through the few savings anyone has in their bank…
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Fiscal insanity!
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I have no idea what any of those numbers mean . . . if only there were coupons I could clip . . .
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Ask a socialist (pretending to be a capitalist) to create a budget and this is just what you get.
When you consider the rate at which we are now spending, spending freezes are certifiably insane and one must be insane to find them acceptable. But it sounds good to ignornant ears so its what we get.
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Oh, and MIM, here at our house, we’re positioning our finances for high inflation.
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#1 That’s a great statement! The next election one liner.
” Are there any grownups in Washington?! “
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Problem is, no politician wants the inflation to happen on their watch. So they fudge the numbers and lie through their teeth..
But we’ve seen through this, and we’re getting hacked that they are ignoring the impending disaster that they’ve created, and we’re even more hacked that they’re not doing anything about it.
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Michelle,
And just how are you “position[ing] your finances” for high inflation?
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#3 i million seconds is about 11.5 days ago——Feb 2nd
1 billion seconds is about 32 years ago——–1979
1 trillion seconds ago is about 32,000 years ago. 30,000 BC
But we’re talking over 3 trillion, but that isn’t even counting the debt 15 trillion, then that isn’t even even truthfull, no one knows.
15 trillion seconds ago is 480,000 years ago ( i think)
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I was wrong, we’re talking about a 4 trillion budget!!!
big tax increases if you make $250,000 and above. Plus limited deductions including charitable donations.
We will get really good at finding new and better ways of separating us from our earnings, and all the while never denying ourselves anything.
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My husband is not retiring, for one.
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“We will get really good at finding new and better ways of separating us from our earnings, and all the while never denying ourselves anything.”
If our government doesn’t quit spending and printing money, then we’ll wind up in really bad shape because of hyper inflation and the dollar becoming worthless. The money supply has already doubled once in the past 4 years.
When the dollar is no longer the standard of currency, then it will be way too late. The value of any savings or bank accounts will drop drastically, and we’ll no longer be able to afford all those imports.
yeah. It’ll all balance out in the long run.
My mother told me once that maturity is being able to put off short term gratification for better long term benefit.
It appears that we’re no longer very mature…
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Barack Hussein Obama told the media that he had to make “some tough choices” (Obama’s words) in this budget. The media passed out after a huge an endorphin surge.
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Tough choices?
He was probably referrring to the rejected Tax Increases that were brought back by this budget…
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The Federal Debt now exceeds entire US Economy.
Don’t have the unmitigated gall, (not to mention stupidity) to tell me we haven’t spent enough money, or that we should increase the spending cap.
Instead, tell me how we’re going to pay the interest on the debt.
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And just think, 10 years ago we had a surplus…
And just think, just last year we enacted massive tax CUTS for the wealthy.
Now, that, my friends was INSANITY.
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And that solves the problems of today in what way?
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Until someone lets a group from outside DC tell them what they need to do to trim the budget, NOTHING WILL CHANGE.
For one thing everyone has taken a pay cut except gov’t employees. WHY!!!
And media always point to Social Security and the military as the only things that must be cut. WHY!!!
And then we will have another pay raise for Congress and the lobbyists. WHY!!!
And DC won’t allow any of the banks to pay the money back. WHY!!!
And all those CEOs that we had to pay off. WHY!!!
All the money that goes for research which should be funded elsewhere. WHY!!!
And the BILLIONS that we give away to dictators “that are our friends”. WHY!!!
There’s more but the media is becoming a broken record.
Come the 2012 ELECTION, OBAMA can blame all money taken away from the needy on the Republicans. RIGHT!!!
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NJL: I didn’t hear you complaining that the tax cuts were going to increase the deficit. But you undoubetedly knew they would…
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Obama’s war on prosperity continues.
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What a waste of resources to even put this monstrosity out there. Hopefully this will continue to galvanize Republicans in a meaningful way.
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Make It Man; He was probably referrring to the rejected Tax Increases that were brought back by this budget…
Yes. As all conservatives know, the best way to pay down a debt is to have less money coming in.
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Mrs News
About half of the TARP money has been paid back and banks continue to repay with interest.
“everyone” has not taken a pay cut — many in the middle class have — but not everyone and certainly not CEOS. Fed workers do now have a pay freeze instituted by the Obama Administration.
Media speaks about social security, medicare and military spending because together the 3 comprise some 60 percent of the entire budget.
House republicans have said they will forgo pay increases — bravo.
Which research would you de-fund? Pharmaceuticals say that gov’t subsidies are significant for their research, for example.
Foreign aid – less than 1 percent of the entire budget, not the most fruitful place to start cutting.
A question for everyone — do you really think we can maintain the lowest tax rates in history (spare me rhetoric on corporate rates when loopholes allow the majority of companies to avoid the upper tax rate making the effective tax rate quite a bit lower), maintain military spending at current rates, maintain social security and medicare and balance the budget through cuts alone? Have any of you calculated the immediate effect of budget cuts on employment? Cuts do need to happen, so do tax increases — there needs to be a combination. President Reagan and President GHW Bush had the wisdom to do both. I miss the old GOP.
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Republicans are mocking President Obama’s $3.73 trillion budget for 2012 for waving feebly at historically huge federal deficits.
As they should.
4 Trillion dollars is not a “budget”. It’s a spending plan. And anyone out there that insists that tax increases are a good thing right now… are totally off base.
At my house when I don’t have enough money, I quit spending. I find every way to make cuts that I can. Start with the big stuff and end with all the little stuff. Stuff that adds up quick. I don’t know about you, but one of the the biggest categories in my budget is the one labeled “miscellaneous”.
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You may be able to print money if you’re a counterfeiter. But I don’t have a press and I’m not about to print more money. The government is doing it’s dead level best to increase the supply of the dollar so that it’s no longer the global standard. So I really think this approach is a bad idea.
You might be able to work two jobs and make more money. But I’m exhausted at the end of my day, so I prefer to cut spending to make my budget balance. The government, on the other hand, thinks it can raise taxes on an already struggling bunch of small business across the country. Painless, right? No skin off the politicians back….
And if you go along with this, I think you’re nuts.
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“Yes. As all conservatives know, the best way to pay down a debt is to have less money coming in.”
No the very best way is to not spend the money in the first @#$%! place! Has there ever been a single instance in which you do not twist what conservatives say?
My whole point which all liberals seem to miss, is that we DON’T HAVE THE MONEY!
So. Stop Spending. It’s that simple and that difficult.
In case you don’t understand that, here’s Santelli to explain it simply for you:
http://www.youtube.com/watch?v=QOJpF9aS1zo
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“Fed workers do now have a pay freeze instituted by the Obama Administration.”
I wish that included the president and the congress. In fact they’ve done such a lousy job, that they should all get pay cuts…
Fact:
Medicare and Social Security are on lifesupport. They should have all been revamped YEARS ago. Ya’ll might hate Bush, but at least he had the guts to face those problems and attempt to do something about them. Democrats on the other hand just wanted to vilify the president and leave the status quo alone. Don’t rock the boat on my watch they say…
Cowards.
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#22 “Yes. As all conservatives know, the best way to pay down a debt is to have less money coming in. “
Yes. As all leftists know, the best spending money always comes from someone else’s pocket.
If you leftys put your money where your mouth is you could fund PP and your other pet causes without using force to take money from people who actually work for a living. But that’s not nearly so much fun for you, is it.
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No no no… As all leftists know, the best way to pay down debt is to spend more money, and vilify fiscal sanity…
You people are nuts.
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President Barack Hussein Obama is holding a worship service in Washington DC as i type (previously known as a press conference). The ‘five acts of worship’ are:
1. Distort.
2. Pretend.
3. Twist.
4. Fudge.
5. Filibuster endlessly.
Meanwhile, the world and our nation are spiralling into deeper and deeper instability with Obama feeding the multiple frenzies exponentially. Sorry, but America deserves him. We did not have a good choice in 2008, but we chose the very worst way possible. We chose self-righteousness, government greed, self-centeredness and personal irresponsibility in the extremes.
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You know what really doesn’t make a lick of sense?
Here’s the scenario:
Yesterday we get the news that our Federal Debt has exceeded the entire US economy. Before that we got news that our Trade Deficit was at some several Trillion dollar record high. And the Fed has more than doubled our money supply in the past four years. We’re have a severe threat of losing the dollar as the standard of Global Currency. Our economy is in the tank- certainly a severe Recession if not an outright Depression. Our national, corporate and individual debt are a record highs. Our savings are at an all time low. We’re hemorraging manufacturing overseas so our production is dropping like a stone. We’ve borrowed Trillions of dollars.
And we have no way of making any of it up.
And here’s the part I can’t believe. When any conservative begins to hint at cutting spending, the leftists come out of the wooodwork to defend raising taxes.
Just unbelievable.
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Make It Man: No the very best way is to not spend the money in the first @#$%! place! Has there ever been a single instance in which you do not twist what conservatives say?
My whole point which all liberals seem to miss, is that we DON’T HAVE THE MONEY!
Right. And the conservative response to that fact is to cut the taxes that bring in the money!
What part of that do you not get? Yes, cut spending. Cut it dramatically. Strip the government down to its boxer shorts. We will still have a debt to pay off at the very least,and cutting sources of revenue before that’s done is foolish.
It’s like telling someone trying to lose weight to increase their exercise, but not telling them to also cut their calories. If you only have one side of the equation, you will get not very far, not very fast.
We need to DECREASE outgo, yes, but we also need to INCREASE income.
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“We need to DECREASE outgo, yes, but we also need to INCREASE income.”
Contrary to popular stupidity, taxes are not INCOME.
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Tell me how your’e going to pay the interest on all that debt?
We’re very close to not being able to do that anymore.
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If you want to increase income, you don’t do it by raising taxes. You do it by encouraging business.
So far I don’t see anyone in this adminstration who has a clue to go about doing that.
Deregulate BUSINESS, and regulate the stinkin’ government.
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“Yes, cut spending. Cut it dramatically. Strip the government down to its boxer shorts.”
Well thank you. Of course I find this statement to be inadequate. I’ve never seen any leftist on the blog advocate such a thing. And Obama’s nearly 4Trillion budget doesn’t come anywhere near the boxers…
So if you expect me to believe you, then get serious about defending spending cuts instead of tax increases. Businesses are already struggling and not hiring.
9% unemployment? Pffft! New job creation isn’t even keeping up with population growth. How’s unemployment only 9%.
You fix job creation, you fix the government’s “income” problem. You don’t do that by raising taxes on non-existent wealth creation.
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MiM
The President announced a freeze for fed and white house employees in late December. I believe the House leadership has also been clear on on raises. Not sure about the Senate.
About businesses struggling — small business perhaps. Big business on the other hand is turning a profit but chooses not to hire in an uncertain economic environment — uncertain in part because of unemployment which business is helping to perpetrate … kind of circular. Regardless, profits are up for corporate America — not sure where you have the idea that wealth creation is non-esistent.
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Coyote,
You have to get small business going again if you want the economy to pick back up. The vast majority of US citizens are employed by small business.
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“Big business on the other hand is turning a profit but chooses not to hire in an uncertain economic environment…”
What’s left of “big business” that is. Much of it has left the US, which is why we’re buying cheap imports. Or maybe we’re buying cheap imports and that’s why Big Business has left our shores… Or maybe the import players have been given a huge handicap…
When the dollar is no longer the standard of currency, will it then be time to quite printing and spending money we don’t have? When hyper-inflation eats up everything in all your accounts, will it finally be time for the government to stop spending and printing money?
When is spending more than you have ever too much? If you just raise the debt ceiling, what good is a spending cap?
The fiscal irresponsibility in this country is so thick you could cut it with a chainsaw and sell it by the truck load…
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I don’t see how anyone can deny that our manufacturing base has gone away. That’s where the money is. You have to produce and sell to have a strong economy. That’s why China’s GDP numbers are strong and growing while our numbers are so anemic. Our economy has gone way too far toward the service sector and we are strongly consumptive, but have no manufacturing base to make up the deficit.
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In fact, quoting Peter Schiff from his book Crash Proof 2.0 “The real wealth-producing components of GDP (manufacturing, mining, et al.) have been shrinking in their percentages of the total. Our GDP is over 70 percent consumption, which could collapse at any time because it is finced by debt and not supported by domestic production.”
Doesn’t this worry you?
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