Obama budget slated for $3.8 trillion includes $1.4 trillion in new taxes

The White House rolled out its new $3.8 trillion budget Monday, promising major investments to spur a manufacturing revival in the U.S. while walking a fine line between the August debt accords and President Barack Obama’s fear that too much austerity now will spell trouble for the economy—and his own reelection chances in November.

From Justice to Defense and Homeland Security, as many as six cabinet level departments or agencies will see their budget shrink in compliance with the new appropriations caps. But Obama would also go outside the box by creating new mandatory spending initiatives costing tens of billions of dollars and for the first time, openly tap war savings to fund his domestic agenda.

In the case of taxes, the budget never spells out Obama’s much-talked-about “Buffett rule”—-that all of the most wealthy must pay an effective tax rate of at least 30 percent. But his long-term deficit reduction plan rests very much on achieving $1.43 trillion in 10-year revenue increases at the households with income over $250,000. And the avid presidential golfer even throws in an additional $593 million proposal to do away with tax deductions for conservation easements on golf courses.

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