Obama Budget to Include Chained CPI, Caps on Retirement Accounts
President Obama's upcoming budget proposal for fiscal year 2014 will include a change in the way certain tax parameters and retirement benefits are measured as part of a broader blueprint for $1.8 trillion in overall deficit reduction over the next decade, White House officials confirmed April 5.
That and other details in the package largely mirror proposals Obama offered in December discussions with House Speaker John Boehner (R-Ohio), though the administration is not rolling out its budget until April 10. It will include a mix of revenue increases, spending cuts, and spending plans, and opinions differ on whether any components in the plan will gain traction.
A dismissive statement from Boehner's office noted that Obama's December offer fell short then, and said House Republicans remain cool to the package because the New Year's fiscal cliff deal already includes more revenue, most visibly a higher marginal tax rate on those who earn more than $400,000 or $450,000 for households. Boehner also complained that Obama would only reduce the deficit by $600 billion over the next decade.