President Barack Obama on Monday proposed a $3.99 trillion budget for fiscal year 2016 that sets up a battle with Republicans over programs 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 percent of U.S. gross domestic product. It projects deficits stabilizing at that rate over a 10-year period, senior administration officials said.
Obama’s budget fleshes out proposals from his State of the Union address and helps highlight Democratic priorities for the last quarter of his presidency and the beginning of the 2016 presidential campaign.
But it is as much a political document as a fiscal road map and would require approval from the Republican-controlled Congress to go into effect.