Such tax increase went nowhere when Democrats controlled both the House of Representatives and the Senate. With Republicans in charge of the House and able to filibuster almost anything in the Senate, the odds any of these tax proposals will pass this year are close to nil.
Much of his purported spending reduction is accounting legerdemain: he claims to save more than $800 billion from drawing down operations in Iraq and Afghanistan, but most of that was never going to be spent anyway. His cuts to Medicare and Medicaid consist almost entirely of squeezing health-care providers; benefits and beneficiaries are spared. There are painful cuts to discretionary spending excluding defence: it sinks from 3.1% of GDP in fiscal 2012 to 1.7% in 2022. Those cuts, however, were forced on him by budget deals last year, and it’s not clear how the federal government is supposed to fulfill so many of its responsibilities, from running the courts to fighting forest fires, on a starvation diet. Mr Obama did omit nearly $1 trillion of further cuts set to begin next year under last year’s budget deal (the “sequester”); he argued his budget provides a wiser alternative.