Obama Budget Proposes Tax, Benefit Changes

President Barack Obama is proposing a U.S. government budget for 2014 that would change taxes for the wealthy and adjust the way social security benefits are calculated, a plan that fails to satisfy many members of both parties.

The White House says Obama's plan will reduce the deficit by nearly $2 trillion over the next decade, through a combination of new revenues and budget cuts. The president wants to raise more money by eliminating or reducing tax breaks for wealthy Americans and corporations, and through a minimum 30 percent tax on people making $1 million or more a year.

Obama's budget also includes major spending cuts to Social Security and Medicare, two popular programs that support elderly Americans.

Congressional Republicans are opposed to raising more government revenue, after a deal with Democrats earlier this year that increased income-tax rates on wealthy Americans. And lawmakers in the president's own Democratic Party are angry over his suggestion to switch to a modified formula to measure inflation, which will lower annual cost-of-living increases for Social Security recipients. News by VOA News.

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