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Obama sends Congress $3.8 trillion spending plan

Apr. 10, 2013
 
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President Barack Obama is sending Congress a $3.8 trillion spending blueprint that strives to achieve a 'grand bargain' to tame runaway deficits. / AP

WASHINGTON — President Barack Obama is sending Congress a $3.8 trillion spending blueprint that strives to achieve a “grand bargain” to tame runaway deficits. It would raise taxes on the wealthy and trim popular benefit programs including Social Security and Medicare.

The president’s budget projects deficit reductions of $1.8 trillion over the next decade, achieved with higher taxes, reductions in payments to Medicare providers and trims in the cost-of-living adjustments paid to millions of recipients in Social Security and other government programs.

The budget would also nearly double the federal tax on cigarettes to $1.95 per pack. That money would fund a new pre-school program for 4-year-olds.

The president proposes spending $3.8 trillion in the 2014 fiscal year, which begins Oct. 1, up 2.5 percent from this year.

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