Obama’s Budget

Clearly the big story of the day is the deliberate leakage of Obama budget plans. The highlights:

  1. Obama wants the 2013 deficit to be half the size of the 2009 deficit he inhereted.
  2. The 2010 deficit is going to be large.
  3. Specifically, we’ll go from $1.2 trillion in 2009 to $1.5 trillion in 2010 to $533 billion in 2013.
  4. Spending cuts are expected to come from the expiration of stimulus money, from a reduction in “emergency” appropriations for Iraq and Afghanistan, from reductions in Medicare Advantage giveaways to private insurance firms, and I believe from some other form of medical efficiencies.
  5. Revenue enhancements are projected to come from the expiration of the Bush tax cuts, from ending the hedge fund manager’s loophole, and from carbon auction permits.
  6. Overall, the idea is to get back down to a deficit of about 3 percent of GDP, but to have a better health care system when we do it.

I assume more and more info on this will become available in the next few days.