New budget to cut more than $1 trillion from deficit - WMC Action News 5 - Memphis, Tennessee

New budget to cut more than $1 trillion from deficit

WASHINGTON (NBC) - President Barack Obama's new budget released Monday promises to reduce the deficit just over $1 trillion over the next decade, mostly by limiting tax breaks for the wealthy.

"This budget asks Washington to live within its means, while at the same time investing in our future," Obama said.

He wants to spend more on education, energy and infrastructure, balanced by cuts in those same areas. For instance: more Pell grants for college, but not during the summer.

"We're doing what every family does when it sits around its kitchen table," said Jacob Lew, director of the Office of Management and Budget. "We're making the choice about what do we need for the future."

There are cuts in Medicare to prevent reducing payments to doctors, less government help for people who can't pay their heating bills and fewer community block grants.

"No matter how popular sounding these programs are, they mortgage our children's future and they compromise our economic growth today," House Budget Committee Chairman Paul Ryan said.

The Pentagon would get less money for weapons programs.

Republicans argue that Washington could save more by getting out of the mortgage business.

"We're on the hook now for $153 billion. It will be well over $300 billion before we're out of it," House Speaker John Boehner said. "But it's time to begin to transition to this activity to the private sector."

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