Obama's 2013 Budget

On Monday, President Barack Obama presented his 2013 budget. The ongoing election season combined with partisan divisions promise to make passing the more than 250 page document difficult.

The budget calls for the government to take in $1.4 trillion in individual income taxes—$200 billion more than in 2012—partially by allowing the expiration of Bush-era tax cuts on households making more than $250,000 a year.

It also includes the “Buffett Rule.” Named after investor Warren Buffett, who asserted that the rich pay too little in taxes in an August New York Times editorial, the change increases the tax rate of those who make more than $1 million per year in income. Elected Republicans have fought these proposals in the past year, decreasing the likelihood representatives would change their stance and vote for the measures.

“Two of our biggest economic challenges—creating jobs and reducing long-term deficits—both depend on instituting a simpler, fairer, more progressive tax system than we have today,” states the portion of the budget dealing with tax reform.

The five objectives of the 2013 tax reforms are: simplify the tax code and lower tax rates, eliminate inefficient tax breaks, decrease the deficit, increase job creation and obey the “Buffett Rule.”

The budget also calls for taking in an additional $118 billion in Social Security and retirement taxes. The budget expects to take in $959 billion, the most of any administration in the past 30 years.

The deficit proposed in the budget is $765 billion, almost half the 2012 proposed budget's $1.3 trillion.

In addition to more revenue from taxes, the budget calls for cuts in several departments. Defense spending would be cut to $647 billion, compared to the $721 billion Obama spent during his first year in office.

The cuts are intended to achieve $486.9 billion in savings by 2021, according to a press release issued by the While House. The budget also establishes commissions to reduce or close some military bases and increases accountability within the Department of Defense. Cuts to defense have been discouraged by representatives who worry they will leave the U.S. vulnerable to attacks from other nations.

The Department of Defense “will have Statements of Budgetary Resources for general funds ‘audit ready' by 2014, three years earlier than previously planned,” the budget states. “This audit of the Department's Statement of Budgetary Resources will encompass a complete review of how the Department receives and spends its funds.”

The proposed budget would increase Social Security spending from $781 billion to $830 billion for 2013. It would also increase Medicare spending to $530 billion, about a $30 billion increase. Income Security spending would be cut from $567 billion to $551 billion.

Funding for the Department of Energy would increase about 3 percent $27 billion. The budgets motive behind the increase is clear. “It increases funding for the development of the next generation of advanced vehicles and biofuels, and it maintains crucial support for research, development, and demonstration of renewable electricity generation."

While the 2013 budget focuses greatly on cuts, intended to help dig America's way out of its deficit, Obama is not apprehensive to increase funds to departments intended to improve America's future, such as Social Security and the Department of Energy.