Washington DC (24/7 News Network): US President Barack Obama has come up with a $3.55 trillion budget in 2010 to revive the American economy and put it on the path of high growth.
The budget has focused on healthcare, climate change, military and education. Obama expressed confidence that the United States will return to steady growth by early next year.
While Obama offered tax breaks to average Americans, he raised taxes on the wealthiest Americans. He also warned that the size of deficit required tough decisions on spending priorities. "There are some hard choices that lie ahead", said Obama.
Obama's Budget 2010 has more plans and strategies for cost savings. While the budget forecasts a $1.750 trillion deficit in fiscal 2009, it foresees the deficit falling to $1.171 trillion in 2010. Barack Obama urged the Congress to increase the Pentagon's regular budget by 4 per cent to $533.7 billion next year.
Obama also requested about $205 billion in war funding through the end of fiscal 2010. The money will be spent in Iraq and Afghanistan wars. Obama also sought to withdraw tens of thousands of troops from Iraq and boost the US forces fighting Taliban in Afghanistan.
The proposed spending of $3.552 trillion in 2010, is down from the this year's total spending of $3.938 trillion. Obama also sought to set up a $634 billion, 10-year fund to pay for healthcare reforms.
Obama also said that the US will invest $15 billion to develop technologies like wind power and solar power and build more efficient cars and trucks in the country. Not surprisingly, Obama has shifted his focus to home-grown jobs and products and issued a veiled threat to the companies that outsource their jobs abroad.
While Obama raised taxes on Americans who earn more than $250,000 a year from 35 per cent to just under 40 per cent, there will be no tax breaks to the companies that outsource their jobs abroad. The US government will gain $1 trillion in higher taxes over the 10-years.
