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President Barack Obama - Source: Reuters -
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The Obama administration put money behind its message with the
release of its fiscal 2011 budget, propping up policy priorities
with more cash while setting a tone of caution about the high
deficit.
Follow the funding proposals, which must be backed by the US
Congress, and a few key points become clear: jobs and education are
in; banks and journeys to the moon are out.
Here is a look at some of the winners and losers in the budget for
the year starting October 1, based on initial details released by
the White House:
Winners
Education - President Barack Obama has spent
recent days forecasting budget cuts and highlighting a spending
freeze in many domestic programmes. Schools, however, got top
billing among a handful of areas that would receive more in the new
budget.
Message: the administration wants to give teeth to
its commitment to improve the US education system, which it sees as
crucial to keeping the country competitive.
Small businesses - The "jobs jobs jobs" message the White House is pushing took on a monetary figure in the budget. The administration set aside $US100 billion for small business tax cuts and investments in infrastructure and clean energy. That figure includes $US33 billion to help spur hiring and wage hikes.
Research and Development - The Obama
administration likes R&D. The budget includes $US3.7 billion in
additional funds for civilian research and development, a 6.4%
increase to $US61.6 billion.
This fits in with Obama's emphasis on "innovation" to create
jobs.
Air travel - The budget puts more money aside
for special screening machines at airports and for federal air
marshals on international flights
Losers
The wealthy - If your household earns more than $US250,000 a year, start saying goodbye to the tax cuts of 2001 and 2003. Obama's budget lets those cuts expire seeks to raise $US678 billion over 10 years to set against the deficit.
Banks - In case there was any doubt about Obama's threat to make banks pay taxpayers back for the bailout program, the goal is now enshrined in the budget. The administration expects to earn $US90 billion over 10 years from a fee it plans to levy on big financial institutions.
NASA - So much for another moon landing. Obama proposes scrapping the program that would pursue another trip to the moon, focusing the agency in other directions such as going to Mars. Though Mars is not a bad goal, the elimination of the moon destination makes the agency lose a storied mission.
Climate change - Though the budget includes
money for "clean technologies," it scraps projected revenue from a
cap and trade system to curb greenhouse gas emissions and fight
climate change.
That doesn't mean Obama has given up on the legislation in
Congress, but it does send a signal that the White House's
confidence that lawmakers will pass it with an emissions trading
mechanism is waning.
