President Obama revealed a $3.8 trillion budget for 2011 on Monday that tries to balance two competing goals: continued government spending to boost the fragile economic recovery and controlling the nation’s deficit.
“We simply cannot continue to spend as if deficits don’t have consequences, as if waste doesn’t matter,” Obama said at a White House presentation. “It’s time to save what we can, spend what we must and live within our means once again.”
The budget calls for $53 billion in tax cuts and $50 billion job-creating measures, including small-business tax cuts, as well as new investments in green technology and infrastructure programs for work on roads and bridges.
The budget proposes new tax breaks and incentives for small businesses that hire new employees or boost wages, which would cost $30 billion. There would also be tax breaks for small businesses that make new investments.
The budget includes a one-year extension of Making Work Pay tax breaks, delivered as a part of last year’s stimulus package, which would cost $22 billion. This credit resulted in slightly higher paychecks for 110 million families, according to the White House.