The 2013 budget plan, which will be presented by President Barack Obama on Monday, has been billed by the White House as a “blueprint for how we can rebuild an economy where hard work pays off and responsibility is rewarded.” Obama’s budget proposal projected the deficit for the 2012 fiscal year will reach $1.3 trillion before it falls in 2013 to $901 billion, which is also known as a 5.5 percent of gross domestic product (GDP). According to the White House, by 2022, the deficit is predicted to fall to $704 billion, or 2.8 percent of GDP.
For the 2013 budget plan, the Pentagon plans to spend $487 billion less of the course of 10 years, which Secretary of Defense Leon Panetta has verbally discussed, it raises taxes by $1.5 trillion, including a provision to allow the expiration of the Bush-era tax cuts on families who earn more than $250,000 a year, and it will also incorporate the Buffet Rule, which requires households earning more the $1 million to pay a 30 percent tax rate. In a Kansas speech, Obama gave Americans a choice of a “fair shot” with him or back to the “you’re on your own economics,” referencing the previous President George W. Bush administration. The tax break is projected to affect about 160 million Americans, saving the average family about $1,000 a year.
