Republicans on the attack as Obama proposes $4 trillion budget for 2016

President Barack Obama on Monday proposed a $3.99 trillion budget for fiscal year 2016 that sets up a battle with Republicans over programmes 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% of U.S. gross domestic product. It projects deficits stabilizing at that rate over a 10-year period, senior administration officials said.

Our hope is that by laying out … a clear economic vision centered around the middle class and economic growth, that we’ll be able to have a productive conversation (with Republicans) and make progress over the course of the year.

U.S. Government official

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 received a lukewarm welcome. ”When … he devotes his time and energy to talking about the new tax-and-spend policies that progressives like and Republicans universally oppose, he signals to Congress that he is once again looking to argue rather than to legislate,” said Keith Hennessey, a former economic adviser to Republican President George W. Bush.