(Bloomberg) – U.S. President Barack Obama’s budget will propose tax cuts for low-income families, a retirement savings plan and ask Congress to make permanent certain tax breaks to offset the cost of higher education.
The Obama administration yesterday released excerpts of the president’s $3 trillion-plus fiscal 2015 budget to be sent to lawmakers today. It will call for $56 billion in new spending for repairs of roads and bridges, job training and preschool education.
“We’ll pay for every dime of it by cutting unnecessary spending, closing wasteful tax loopholes,” the president told the Democratic National Committee in a speech Feb. 28. Details weren’t specified.
The sixth budget of Obama’s presidency comes more than a month late and eight months before the midterm congressional elections. It represents a snapshot of his political priorities and is designed to give Democratic lawmakers a platform for their re-election campaigns.
At the same time, it serves as a contrast to congressional Republicans, who’ll block the Obama budget from adoption and likely offer one of their own.
The $56 billion in spending would be on top of a budget agreement hammered out in December with Republicans. Starting in the year that begins Oct. 1, the money would be split equally between the Defense Department and domestic programs. It envisions building more manufacturing technology hubs to boost jobs skills, helping localities battle climate change and expanding programs to reduce energy waste.
The excerpts include plans to strengthen the existing earned income tax credit by extending it to childless adults and young workers. The White House says the program would be a work incentive and help lift millions of people out of poverty.
Obama will also propose an expansion of the child and dependent care tax credit targeted at families with children under five years old. Details weren’t spelled out, but the excerpts said it would benefit about 1.7 million families who’d get an average tax cut of more than $600 a year.