February 1st, 2010
10:03 AM ET
5 years ago

Obama unveils $3.8 trillion budget

Washington (CNNMoney.com) - President Obama revealed a $3.8 trillion budget for 2011 on Monday that tries to balance two competing goals: continued government spending to boost the fragile economic recovery and controlling the nation's deficit.

The budget calls for $53 billion in tax cuts and $50 billion job-creating measures, including small-business tax cuts, as well as new investments in green technology and infrastructure programs for work on roads and bridges.

"The employment market remains weak," said White House budget chief Peter Orszag in a conference call on Sunday. "In that context, the budget focuses on job creation and middle class stability."

The budget proposes new tax breaks and incentives for small businesses that hire new employees or boost wages, which would cost $30 billion. There would also be tax breaks for small businesses that make new investments.

Full story


Filed under: Budget • CNNMoney.com • Peter Orszag • President Obama
soundoff (44 Responses)
  1. insanity

    After wasting billions on gm and other failed programs , now they are worried about the deficit. They should have listened to the economist to start with instead of throwing money to the uaw through auto maker bailouts and cash for clunkers,wasting it on green jobs, aig type bailouts and other so called stimulus projects. Now we will be saddled with this massive debt for years to come.Somebody needs a lesson in simple economics. Management inexperience shows.Tax and spend at work.

    February 1, 2010 08:48 am at 8:48 am |
  2. Annual pork dinner now beng served at Whote House

    Welcome to all the Incumbents in DC to the Annual Pork dinner, hosted by your White House executive Chef – Barack Obama.

    As America's financial standing in the world continues to fall, it is not unexpected that Democratic beauracrats line up at the feeding troughs of your governments- the government money can buy.

    Americans should go to the polls and vote in the mid terms. and I do not care if you all vote republican, democratic, or independent. Just do not vote for ANY incumbent. If Americans are going to get change, we need to do this ourselves and change everybody in DC today. Perhaps that will send the kind of wake up call we need the president to hear. WE WANT CHANGE - WE WANT TO CHANGE EVERY POLITICIAN IN OFFICE. SO VOTE OUT INCUMBENTS OF ALL PARTIES.

    February 1, 2010 09:00 am at 9:00 am |
  3. John D.

    Yup, that's how to freeze spending! Way to go OBOZO!

    February 1, 2010 09:08 am at 9:08 am |
  4. southerncousin

    No cuts in entitlements and no addiditonal fraud investigation in those areas which are so rife with fraud and corruption. To investigate and try to recover the money would hurt the Obamatron reelections chances since the money is going to "his" voters.

    February 1, 2010 09:08 am at 9:08 am |
  5. Neil A.

    Gutting the space program. He's no John F. Kennedy, is he?

    February 1, 2010 09:20 am at 9:20 am |
  6. Dave

    Nearly 45% of this budget will be supplied through borrowing. If this is what the white house considers fiscal responsibility we are in deep trouble. If congress approves this we have even yet another incentive to remove the majority of law makers in both the house and senate. Our children and grandchildren deserve better.

    February 1, 2010 09:21 am at 9:21 am |
  7. Mr Right

    How can spending create jobs? it cannot, It requiires tax cuts for business that last for the long run, not just one year giveaways to Obama supporters. If you really want to turn the country around get out of the way.Business's cannot start to graow without having some idea what these morons in Washington are going to do next.
    And any of you thinking socialist experimentation with the economy works, then just look at California we are in such bad trouble we cannot see the bottom yet, and dont say Arnold is a republican, he's not, he is part of the wishy washy "moderates who do not have true conservative principals, if the Republicans were really conservative and did not lose their core principals we could have stopped this mess we are in before it started.
    Liberals are pushing us over the edge and if we do noting, there willl be no coming back.

    February 1, 2010 09:22 am at 9:22 am |
  8. buckeye

    50 years ago, almost to the day, President Eisenhower warned us all of the dire economic consequences stemming from a massive military industrial complex. Just how right he was is revealed by this enormous budget deficit. $1,000,000,000,000 for the Pentagon helps guarantee that our economy will tank. Being a modern Roman Empire is unaffordable.

    February 1, 2010 09:22 am at 9:22 am |
  9. UNEDUCATED AMERICA

    The budget contains revenue streams from Cap and Trade, when Cap and Trad hasn't even become law (hopefully for the sake of liberty it never will).

    Does this admin. know something the American people's representatives don't?

    Is this what Pelosi means by "pole vaulting legislation" onto the American people, against thier will?

    These peolpe are trying to fundamentally change the US- and they need to be held to thier Oath's of Office to the Constitution- and then they need to be hung for treason- along with the last Admin. for the unconstitutional wars...

    Vote them ALL out- join the Tea Party Revolution.

    "Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty."
    T. Jefferson

    February 1, 2010 09:25 am at 9:25 am |
  10. chaser

    wow, one minute is spending freeze and the next a 3.8 trillion budget. While i hope the 100 billion in tax cuts will help boost the economy, my fear is if Obama insists on spending much of it boosting green jobs then we will not see any results for a very long time. I'm all for green jobs but with americans suffering the way they are with unemployment, it is about getting folks working in general. I'm pessimistic that this plan will work because the president can not continue to demonize businesses while encouraging them to hire...its hyprocritical. Biz can not be evil and saviors at the same time.

    February 1, 2010 09:34 am at 9:34 am |
  11. Mike1952

    Good to see Wingnut adopt some conservative ideas that they have been pushing him to do. Sadly, it's too little. And now we have the stimulus II, titled job creation.

    February 1, 2010 09:40 am at 9:40 am |
  12. Truth-Bomb Thrower

    We need a BALANCE BUDGET AMMENDMENT and we need it NOW!!

    February 1, 2010 09:41 am at 9:41 am |
  13. t22

    But the spending freeze won't start until next year and the whole thing depends on the economy picking up which will be tough when you raise income taxes on the top brackets and make it more expensive to do banking. Hope and spare change!

    February 1, 2010 09:45 am at 9:45 am |
  14. therealamerica

    I can't wait for the Republicans to come out against tax breaks for small businesses.

    February 1, 2010 09:46 am at 9:46 am |
  15. CarlinNJ

    Funny that Obama wants to make the Bush tax cuts permanent. I thought Republicans only cared about the wealthy!!11!!

    February 1, 2010 09:53 am at 9:53 am |
  16. Rick McDaniel

    This is excessive, and will put the country in a perilous state.

    February 1, 2010 09:59 am at 9:59 am |
  17. fools and their freedoms are soon parted

    Ah heck, why not just make it 4 trillion? It's like like it is your $$$$. We should be CUTTING the budget....DECREASING, DELETING, SUBTRACTING......what part of this can't DC get?

    February 1, 2010 10:09 am at 10:09 am |
  18. Gorley Amusen

    These people are so confused. They blame Bush for a 1T dollar deficit and then add to it to fix it? This is craziness, people.

    February 1, 2010 10:20 am at 10:20 am |
  19. Trim spending, please.

    The 'freeze" in spending that Obama railed against when proposed by McCain IS NOT A CUT IN SPENDING. Obama has no intention of actually making government affordable

    For the first time in the history of America, there are more people employed by government than the private sector. Why is this bad, well, because the private sector is paying for the government sector (the government sector just spends taxpayer money).

    Obama is lame.

    February 1, 2010 10:26 am at 10:26 am |
  20. RealityKing

    $1.6 Trillion budget deficit. Change your children and grandchildren will curse you for..

    February 1, 2010 10:30 am at 10:30 am |
  21. Nick

    You'd think after years of deficit spending that we would realize government spending DOES NOT boost the economy. Government spending is the same as a credit card – you are borrowing from future revenues, or borrowing from other countries. I don't know about anyone else, but I have yet to see any wealth (e.g., jobs) built from running up your credit card.

    February 1, 2010 10:30 am at 10:30 am |
  22. buckwheat

    Never fear. It is called redistribution of wealth. You were promised this feature just like you were promised openness and transparency, which you did not get. One out of two is not bad is it?

    February 1, 2010 10:33 am at 10:33 am |
  23. Fed Up

    I'll have to try that trick. Maybe I can go into more debt so I can save money. I'll be doing my part for the country by making the banks rich. You can get some really great ideas from the government!

    February 1, 2010 10:36 am at 10:36 am |
  24. Franky, Land of Lincoln

    How do we evaluate our economy?

    Like this.

    Trade Balance, Consumer price index, Per capita income, Unemployment rate, Inflation, and worker prodcutivity.

    Those are just the few.

    According to the 2000 census(who knows how big of a difference is now but I doubt it matters), the average family made an income of less than $64,000.

    February 1, 2010 10:36 am at 10:36 am |
  25. Hugo

    Destroy the economy, destroy the Nation....

    February 1, 2010 10:40 am at 10:40 am |
1 2