Budget Battle

Monday, February 14, 2011 - 8:51am

The battle over next year's budget continues in Washington.

President Obama's new budget promises to reduce the deficit just over a trillion dollars over the next decade, mostly by limiting tax breaks for the wealthy.

"This budget asks Washington to live within its means, while at the same time investing in our future," said President Obama.

He wants to spend more on education, energy and infrastructure…balanced by cuts in those same areas. For instance: more Pell grants for college, but not during the summer.

Jacob Lew/, Director of the Office of Management and Budget said, "We're doing what every family does when it sits around its kitchen table. We're making the choice about what do we need for the future."

There are cuts in Medicare to prevent reducing payments to doctors, less government help for people who can't pay their heating bills and fewer community block grants.

Chair of the House Budget Committee Paul Ryan said, "No matter how popular sounding these programs are, they mortgage our children's future and they compromise our economic growth today."

The Pentagon would get less money for weapons programs.

Republicans say Washington could save more by getting out of the mortgage business.

House Speaker John Boehner said, "We're on the hook now for $153 billion. It will be well over $300 billion before we're out of it. But it's time to begin to transition to this activity, to the private sector."

The new budget arrives on Capitol Hill today.

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