Video: Obama budget banks on red ink

  1. Closed captioning of: Obama budget banks on red ink

    >>> in washington, president obama unveiled his budget proposal for the coming year. the numbers are huge, stagger, in fact, $3.8 trillion in total federal spending. and another all-time record budget deficit , $1.6 trillion. this assumes taxes will go up by a trillion dollars over the next ten years through the expiration of the bush tax cuts on families making more than a quarter million a year. today's budget sets aside $100 billion for creating jobs. with us tonight for more on what it all means, our chief white house correspondent chuck todd . we say the numbers are staggering, there's very little to compare them against. what kind of context should be attached to this?

    >> well, first of all, this is the beginning of the process, not the end. this is the president's proposed budget. as we know, it's congress that decides how to appropriate money, and how congress receives this. and they will nitpick at a lot of these proposals. you talked about, you have the expiration of those so-called bush tax cuts . there won't be a vote on those, that's going to get a heated political rhetoric started to talk about those tax cuts quite a bit. there is a tax deduction that will come up for vote. you have proposed cuts in the manned space program of nasa which could become a political hot potato in the state of florida , when you talk about jobs and that state is a politically relevant state. as for these deficit projections, these are just that, projections. it's assuming the economy is continuing to recover. if it does not, these deficit projections that we see today, 1.6 billion this year, 1.3 billion next year, those numbers could go way up. if health care doesn't passion, because this budget assumes health care will pass, that's another $150 billion that will be tacked on to the deficit. there's a long way to go before we know what these exact numbers are going to look like, and what congress ends up passing.

    >> another story we'll be talking about for months to come. chuck todd at the white house for us tonight. thanks.

    >>> even as washington struggles to

updated 2/1/2010 1:52:15 PM ET 2010-02-01T18:52:15

President Barack Obama wants $192 billion in war spending for the next year-and-a-half, a hefty sum aimed at escalating the war in Afghanistan despite its waning popularity.

The request reflects Obama's recent decision to send 30,000 more troops to Afghanistan to blunt a growing insurgency there. Despite doubts among many Americans, including those in his own political party, Obama sees the decision as critical to bringing the war to a conclusion.

His plan calls for troops to start leaving Afghanistan in July 2011.

"The United States must prevent the Taliban from turning Afghanistan back into a safe haven from which international terrorists can strike at us or our allies," Obama said in his budget.

The government has already shelled out a combined $1 trillion since 2001 for the wars in Afghanistan and Iraq.

Obama's $192 billion war budget rivals the $245 billion request made in 2007 by President George W. Bush, after announcing that more than 20,000 combat troops would be sent to Baghdad.

Congress was expected to endorse the budget plan even though several anti-war Democrats oppose the troop buildup and others are looking for ways to lessen the war's burden on the nation's deficit. Some lawmakers have proposed a special "war tax" to cover the costs, while Republicans have suggested taking money from Obama's $787 billion stimulus package.

The $192 billion request includes $33 billion to pay for the troop buildup this year. The remaining $159 billion would pay for overseas military operations in the government's 2011 budget year, which begins Oct. 1.

Some of the 2011 money was expected to go toward Pakistan, including $2 billion to reimburse Islamabad for operations along its Afghan border.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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