Nightly News   |  February 01, 2010

Obama budget banks on red ink

President Barack Obama unveiled his budget proposal for the coming year on Monday, allowing for deficits totaling $8.53 trillion over the next 10 years, and earmarking $100 billion for job creation. NBC's Chuck Todd reports.

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>>> 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