Obama: Budget Shrinks Deficits And Expands Economy - Spokane, North Idaho News & Weather KHQ.com

Obama: Budget Shrinks Deficits And Expands Economy

WASHINGTON (AP) - President Barack Obama says his proposed $3.77 trillion budget for 2014 can shrink federal deficits and expand the U.S. economy. He says: "We can do both."
    
Obama spoke at the White House Wednesday as his administration issued his budget proposal. It would replace $1.2 trillion in automatic spending cuts scheduled to take effect over the next 10 years with $1.8 trillion in deficit-reduction measures. His plan calls for reductions in Social Security and Medicare spending and increases in taxes, mostly on the wealthy.
    
He says: "It replaces these cuts with smarter ones."
    
Obama also would increase cigarette taxes by 94 cents a pack to pay for expanded preschool programs. He also calls for $50 billion in public works spending.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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