By Carol E. Lee
President Barack Obama's 2015 budget won't include policies in his previous budgets that have been favored by Republicans, a White House official said, including a change in the consumer-price index that would affect Social Security.
Instead, Mr. Obama's budget will present proposals supported by the Democratic Party, such as tax increases aimed at the high-income earners, setting up an election-year battle over fiscal priorities.
Mr. Obama's budget will include a proposal the White House has dubbed the Opportunity, Growth, and Security Initiative, which proposes new spending on education, manufacturing and job training programs that would be paid for by closing certain tax loopholes and cutting $28 billion from defense and nondefense spending.
"This year the administration is returning to a more traditional budget presentation that is focused on achieving the president's vision for the best path to create growth and opportunity for all Americans, and the investments needed to meet that vision," a budget memo from a White House official said. "While Republicans may still protest any effort to close a single common-sense tax loophole, that is not going to stop the president from promoting new policies that should be part of our public debate."
The president's decision to abandon Republican proposals, such as the so-called chained CPI that has been part of bipartisan talks over the past three years, makes clear the White House doesn't expect budget negotiations with Republicans to bear any fruit this year. His budget, due early next month, is set to be more of a political document in an election year.
Mr. Obama's budget will adhere to the 2015 spending levels set in a bipartisan budget compromise in Congress, the White House official said.
Write to Carol E. Lee at carol.lee@wsj.com
By Carol E. Lee
Obama Budget Sets Up GOP Showdown--Update
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Obama Budget Sets Up GOP Showdown
President Barack Obama's 2015 budget proposal won't include policies in his previous proposals that have been favored by Republicans, including a change to CPI that would affect Social Security.
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Obama Budget Sets Up GOP Showdown
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Obama Budget Sets Up GOP Showdown
President Barack Obama's 2015 budget won't include policies in his previous proposals that have been favored by Republicans, including a change to CPI--so-called chained CPI--that would affect Social Security.
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Obama Budget Sets Up GOP Showdown
Chained CPI Off Table as Spending Plan Focuses on Democrat-Supported Programs
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By Carol E. Lee text RealTime
President Barack Obama's 2015 budget proposal won't include policies in his previous budgets that have been favored by Republicans, a White House official said, including a change in the consumer-price index that would affect Social Security.
Instead, Mr. Obama's budget will present proposals supported by the Democratic Party, such as tax increases aimed at the high-income earners, setting up an election-year battle over fiscal priorities.
Mr. Obama's budget will include a proposal the White House has dubbed the Opportunity, Growth, and Security Initiative, which proposes new spending on education, manufacturing and job training programs that would be paid for by closing certain tax loopholes and cutting $28 billion from defense and nondefense spending.
"This year the administration is returning to a more traditional budget presentation that is focused on achieving the president's vision for the best path to create growth and opportunity for all Americans, and the investments needed to meet that vision," a budget memo from a White House official said. "While Republicans may still protest any effort to close a single common-sense tax loophole, that is not going to stop the president from promoting new policies that should be part of our public debate."
The president's decision to abandon Republican proposals, such as the so-called chained CPI that has been part of bipartisan talks over the past three years, makes clear the White House doesn't expect budget negotiations with Republicans to bear any fruit this year. His budget, due early next month, is set to be more of a political document in an election year.
The chained CPI would change the government's method of calculating cost-of-living adjustments so they rise more slowly, according to supporters. The rationale is that the chained CPI inflation measure better accounts for consumers' behavior, such as when they react to a product's price increase by switching to cheaper alternatives.
Critics say seniors spend more on fast-growing health care costs than other Americans and that chained CPI ignores this difference.
Mr. Obama's budget will adhere to the 2015 spending levels set in a bipartisan budget compromise in Congress, the White House official said.
Write to Carol E. Leeat carol.lee@wsj.com
Write to Carol E. Lee at carol.lee@wsj.com
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