President Barack Obama today proposed a $3.99 trillion budget for fiscal year 2016 that sets up a battle with Republicans over programs to boost the middle class that are funded by higher taxes on corporations and wealthy Americans.
The budget foresees a $474 billion deficit, which is 2.5 percent of U.S. gross domestic product. It projects deficits stabilizing at that rate over a 10-year period, senior administration officials said.
Obama’s budget brings up proposals from his State of the Union address and helps highlight Democratic priorities for the last two years of his presidency.
But it is also a fiscal road map and would require approval from the Republican-controlled Congress to go into effect.
Republicans have said they see room for compromise in areas such as tax reform and infrastructure, but many of Obama’s programs, which were rolled out in the weeks before the budget’s release, have landed with a thud.