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President Obama: “A blueprint for America’s success in the new global economy”

The White House has released its Fiscal Year 2016 Budget. The president spoke at the Department of Homeland Security about the budget in general and the importance of a fully funded DHS in particular:

[This budget is] a broader blueprint for America’s success in this new global economy.  Because after a breakthrough year for America — at a time when our economy is growing and our businesses are creating jobs at the fastest pace since the 1990s, and wages are starting to rise again — we’ve got some fundamental choices to make about the kind of country we want to be.

Will we accept an economy where only a few of us do spectacularly well?  Or are we going to build an economy where everyone who works hard has a chance to get ahead? […]

The budget I’ve sent to Congress today is fully paid for, through a combination of smart spending cuts and tax reforms. […]

I’m going to keep fighting to make sure that every American has the chance not just to share in America’s success but to contribute to America’s success.  That’s what this budget is about.

Full transcript below.

Transcript: Remarks by the President on the FY2016 Budget

Department of Homeland Security, Washington, D.C., 11:27 A.M. EST

THE PRESIDENT:  Thank you so much.  (Applause.)  Thank you, everybody.  Please, have a seat.  Well, good morning, everybody.   It is good to be here at the Department of Homeland Security.  And let me thank Jeh Johnson not only for the outstanding job that’s he’s doing as Secretary of DHS, but also for a short introduction.  I like short introductions.  (Laughter.)  Give him a big round of applause.  (Applause.)

This is a great way to start the week, because I get to do something I enjoy doing, which is saying thank you.  Nobody works harder to keep America safe than the people who are gathered here today.  And you don’t get a lot of attention for it — that’s the nature of the job.  But I know how vital you are, and I want to make that sure more Americans know how vital you are.  Because against just about every threat that we face — from terrorist networks to microscopic viruses to cyber-attacks to weather disasters — you guys are there.  You protect us from threats at home and abroad, by air and land and sea.  You safeguard our ports, you patrol our borders.  You inspect our chemical plants, screen travelers for Ebola, shield our computer networks, and help hunt down criminals around the world.  You have a busy agenda, a full plate.  And here at home, you are ready to respond to any emergency at a moment’s notice.  

It is simply extraordinary how much the Department of Homeland Security does every single day to keep our nation, our people safe.  It’s a critical job, and you get it done without a lot of fanfare.  And I want to make sure that you have what you need to keep getting the job done.  Every American has an interest in making sure that the Department of Homeland Security has what it needs to achieve its mission — because we are reliant on that mission every single day.

Now, today, I’m sending Congress a budget that will make sure you’ve got what you need to achieve your mission.  It gives you the resources you need to carry out your mission in a way that is smart and strategic, and makes the most of every dollar.  It’s also a broader blueprint for America’s success in this new global economy.  Because after a breakthrough year for America — at a time when our economy is growing and our businesses are creating jobs at the fastest pace since the 1990s, and wages are starting to rise again — we’ve got some fundamental choices to make about the kind of country we want to be.

Will we accept an economy where only a few of us do spectacularly well?  Or are we going to build an economy where everyone who works hard has a chance to get ahead?

And that was the focus of my State of the Union Address a couple weeks ago — what I called middle-class economics.  The idea that this country does best when everybody gets a fair shot, and everybody is doing their fair share, and everybody plays by the same set of rules.

The budget that Congress now has in its hands is built on those values.  It helps working families’ paychecks go farther by treating things like paid sick leave and childcare as the economic priorities that they are.  It gives Americans of every age the chance to upgrade their skills so they can earn higher wages, and it includes my plan to make two years of community college free for responsible students.  It lets us keep building the world’s most attractive economy for high-wage jobs, with new investments in research, and infrastructure and manufacturing, as well as expanded access to faster Internet and new markets for goods made in America.



It’s also a budget that recognizes that our economy flourishes when America is safe and secure.  So it invests in our IT networks, to protect them from malicious actors.  It supports our troops and strengthens our border security.  And it gives us the resources to confront global challenges, from ISIL to Russian aggression.

Now, since I took office, we have cut our deficits by about two-thirds.  I’m going to repeat that, as I always do when I mention this fact, because the public oftentimes, if you ask them, thinks that the deficit has shot up.  Since I took office, we have cut our deficits by about two-thirds.  That’s the fastest period of sustained deficit reduction since after the demobilization at the end of World War II.  So we can afford to make these investments while remaining fiscally responsible.  And, in fact, we cannot afford — we would be making a critical error if we avoided making these investments.  We can’t afford not to. When the economy is doing well, we’re making investments when we’re growing.  That’s part of what keeps deficits low — because the economy is doing well.  So we’ve just got to be smarter about how we pay for our priorities, and that’s what my budget does.

At the end of 2013, I signed a bipartisan budget agreement that helped us end some of the arbitrary cuts known in Washington-speak as “sequestration.”  And folks here at DHS know a little too much about sequestration — (laughter) — because many of you have to deal with those cuts, and it made it a lot harder for you to do your jobs.

The 2013 agreement to reverse some of those cuts helped to boost our economic growth.  Part of the reason why we grew faster last year was we were no longer being burdened by mindless across-the-board cuts, and we were being more strategic about how we handled our federal budget.  And now we need to take the next step.  So my budget will end sequestration and fully reverse the cuts to domestic priorities in 2016. And it will match the investments that were made domestically, dollar for dollar, with increases in our defense funding.

And just last week, top military officials told Congress that if Congress does nothing to stop sequestration, there could be serious consequences for our national security, at a time when our military is stretched on a whole range of issues.  And that’s why I want to work with Congress to replace mindless austerity with smart investments that strengthen America. And we can do so in a way that is fiscally responsible.

I’m not going to accept a budget that locks in sequestration going forward.  It would be bad for our security and bad for our growth.  I will not accept a budget that severs the vital link between our national security and our economic security.  I know there’s some on Capitol Hill who would say, well, we’d be willing to increase defense spending but we’re not going to increase investments in infrastructure, for example, or basic research.  Well, those two things go hand in hand.  If we don’t have a vital infrastructure, if we don’t have broadband lines across the country, if we don’t have a smart grid, all that makes us more vulnerable.  America can’t afford being shortsighted, and I’m not going to allow it.

The budget I’ve sent to Congress today is fully paid for, through a combination of smart spending cuts and tax reforms. Let me give you an example.  Right now, our tax code is full of loopholes for special interests — like the trust fund loophole that allows the wealthiest Americans to avoid paying taxes on their unearned income.  I think we should fix that and use the savings to cut taxes for middle-class families.  That would be good for our economy.

Now, I know there are Republicans who disagree with my approach.  And I’ve said this before:  If they have other ideas for how we can keep America safe, grow our economy, while helping middle-class families feel some sense of economic security, I welcome their ideas.  But their numbers have to add up.  And what we can’t do is play politics with folks’ economic security, or with our national security.  You, better than anybody, know what the stakes are.  The work you do hangs in the balance.

In just a few weeks from now, funding for Homeland Security will run out.  That’s not because of anything this department did, it’s because the Republicans in Congress who funded everything in government through September, except for this department.  And they’re now threatening to let Homeland Security funding expire because of their disagreeing with my actions to make our immigration system smarter, fairer and safer.

Now let’s be clear, I think we can have a reasonable debate about immigration.  I’m confident that what we’re doing is the right thing and the lawful thing.  I understand they may have some disagreements with me on that, although I should note that a large majority — or a large percentage of Republicans agree that we need comprehensive immigration reform, and we’re prepared to act in the Senate and should have acted in the House.  But if they don’t agree with me, that’s fine, that’s how our democracy works.  You may have noticed they usually don’t agree with me.  But don’t jeopardize our national security over this disagreement.

As one Republican put it, if they let your funding run out, “it’s not the end of the world.”  That’s what they said.  Well, I guess literally that’s true; it may not be the end of the world.  But until they pass a funding bill, it is the end of a paycheck for tens of thousands of frontline workers who will continue to get — to have to work without getting paid.  Over 40,000 Border Patrol and Customs agents.  Over 50,000 airport screeners.  Over 13,000 immigration officers.  Over 40,000 men and women in the Coast Guard.  These Americans aren’t just working to keep us safe, they have to take care of their own families.  The notion that they would get caught up in a disagreement around policy that has nothing to do with them makes no sense.  

And if Republicans let Homeland Security funding expire, it’s the end to any new initiatives in the event that a new threat emerges.  It’s the end of grants to states and cities that improve local law enforcement and keep our communities safe.  The men and women of America’s homeland security apparatus do important work to protect us, and Republicans and Democrats in Congress should not be playing politics with that.

We need to fund the department, pure and simple.  We’ve got to put politics aside, pass a budget that funds our national security priorities at home and abroad, and gives middle-class families the security they need to get ahead in the new economy.  This is one of our most basic and most important responsibilities as a government.  So I’m calling on Congress to get this done.

Every day, we count on people like you to keep America secure.  And you are counting on us as well to uphold our end of the bargain.  You’re counting on us to make sure that you’ve got the resources to do your jobs safely and efficiently, and that you’re able to look after your families while you are out there working really hard to keep us safe.

We ask a lot of you.  The least we can do is have your backs.  That’s what I’m going to keep on doing for as long as I have the honor of serving as your President.  I have your back.  And I’m going to keep on fighting to make sure that you get the resources you deserve.  I’m going to keep fighting to make sure that every American has the chance not just to share in America’s success but to contribute to America’s success.  That’s what this budget is about.

It reflects our values in making sure that we are making the investments we need to keep America safe, to keep America growing, and to make sure that everybody is participating no matter what they look like, where they come from, no matter how they started in life, they’ve got a chance to get ahead in this great country of ours.  That’s what I believe.  That’s what you believe.  (Applause.)  Let’s get it done.

Thank you.  God bless you.  God bless the United States of America.  (Applause.)

END

11:43 A.M. EST

Bolding and underlining added.

~

White House Budget Links:

– Senior administration officials discuss the budget:

– An interactive view of the budget is here: Interactive Budget.

– The nuts and bolts are here: Office of Management and Budget: The President’s Budget for Fiscal Year 2016

5 new things about this year’s budget. One of them is the look of the budget document itself:

So instead of the plain blue budget cover that administrations typically affix to the budget, this year’s cover features the Tappan Zee Bridge in New York — one of the bridges that has benefited from the President’s previous investments in infrastructure upgrades.



6 comments

  1. This budget respects the contributions of the working class, provides for investments in our nations infrastructure, and acknowledges our obligation to the elderly, the infirm, and the impoverished.  

  2. Republicans See No Way Out Of Their Self-Made Immigration Quagmire

    Majority Leader Mitch McConnell (R-KY) announced that the Senate will hold a procedural vote Tuesday to advance a House-passed bill to fund DHS and reverse Obama’s executive moves to shield millions of unlawful immigrants, including those brought to the U.S. as children, from the threat of deportation.

    Democratic leaders believe they have the 41 votes needed to block the bill from proceeding to debate, a senior Senate Democratic aide said Monday.

    “We’re not expecting to give the Republicans cloture on the House DHS bill,” the aide said. “For the Senate to take up a bill that has absolutely no chance of being signed into law because it’s littered with extreme, objectionable riders – that’s a waste of time.”

    The House bill is a nonstarter:

    Politico reported that some Republican senators indicated during a recent closed-door meeting that they wanted to bring up a “clean” DHS funding bill and get it over with. “I think the House guys rolled a grenade into the room,” one senator was quoted as saying.

    The Republicans are calling the no-cloture vote a “filibuster against funding the DHS”. No, it is a filibuster against extremism.

    Democrats are relishing the debate, using it as an opportunity to accuse Republicans of wanting to deport more “DREAMers” – young people brought to the country illegally as children.

    Conservative organizations like Heritage Action are scoring this bill meaning that campaign donations and primary challenges are on the line for Republican senators.

  3. Republicans Show They Aren’t Really Interested In Reducing Inequality


    Republicans in Congress are likely to scrap most of his proposals. But if the party is sincere about shrinking income inequality – as prominent politicians have claimed ahead of the 2016 election – the president’s policies deserve a closer look.

    … each of the proposals included in Obama’s new budget are actually likely to decrease the gap and help working-class and poor families.

    One of Obama’s major budget proposals would generate $320 billion in taxes over the next ten years by raising the capital gains tax and the tax rate on Americans making more than $500,000 a year. Research has shown that the low capital gains tax rate has been one of the biggest drivers of inequality. The proposal also calls for higher taxes on large financial institutions and a new tax on inheritances.

  4. Obama Throws Down Gauntlet On Social Security In New Budget

    President Barack Obama signaled in his fiscal year 2016 budget released Monday that he was ready for the fight over Social Security that congressional Republicans made clear last month they wanted.

    Obama’s budget included the transfer of tax revenue from the program’s retirement fund to the disability fund, which would otherwise start being unable to pay full benefits in late 2016. House Republicans passed a rule in January that would block the transfer — known as reallocation — unless Social Security’s overall solvency was improved.

    The GOP made clear that it wanted to force a debate over the program, and some conservative policy wonks said that they hoped Congress would use the need for reallocation as an opportunity to pursue broader changes to Social Security. […]

    “I think this is the White House laying down its marker on the fight that’s coming,” Rebecca Vallas, a Social Security expert at the liberal Center for American Progress, told TPM. “The White House is sending a clear signal that the Social Security system is too important to the American people to hold it hostage to congressional politicking.”

    President Obama has the American people’s back on this … and we should make sure he knows that we have his.

  5. Some pundits think this one might be a problem for the GOP, unlike the previous 55. Greg Sargent:

    As the Atlantic’s Russell Berman puts it:


       They’re doing it for the freshmen – that is, the 47 House Republicans who just took office a month ago and have never had the high honor and privilege of voting to repeal Obamacare. By holding the vote, these lawmakers can head back to their districts and tell their constituents that yes, they did everything they could to get rid of the reviled law.

    Added one GOP aide: “We’re just getting it out of the way.”

    But today’s action amounts to more than just a symbolic gesture or checking a box. Today’s repeal vote comes in the context of a broad debate over the King v. Burwell challenge, which, if upheld by the Supreme Court, could yank subsidies and health coverage from millions and unleash untold disruptions in insurance markets across the country. The repeal vote is a reminder that the only consensus GOP position on health reform is to blow up Obamacare and replace it with nothing.

    Cynical me thinks this show vote will not have any more real consequences than the other 55, regardless of the King v Burwell ruling. The GOP does not care if 5 million of their constituents lose health care. And because of the politics, as Greg Sargent points out, they can’t be seen as caring because if they appear poised to jump in and fix it, the Supreme Court might not kill it. Follow that logic? What it boils down to is playing politics with peoples lives.  

  6. Charlie Pierce

    [The President is] putting the Republican majority on the wrong side of a great number of issues from which there is no walking back after nearly 40 years of voodoo economics. Here’s the money shot.

       It calls for a one-time, 14 percent tax on an estimated $2.1 trillion in profits piled up abroad by companies such as General Electric (GE.N) and Microsoft (MSFT.O), while imposing a 19 percent tax on U.S. companies’ future foreign earnings. It proposes a 7 percent rise in U.S. domestic and military spending, ending “sequester” caps with reforms to crop insurance programs and closing tax loopholes such as one on “carried interest.” Those moves would help fund investments in infrastructure and education. The budget would also reform rules governing trust funds and raise the capital gains and dividend rates to 28 percent from the current top rates of 23.8 percent.

    Again, I remember when people said that Ronald Reagan’s budgets were dead on arrival with Democratic Congresses. That often wasn’t the point, although some congressional Democrats did sign on to certain elements of all of them, more’s the pity. The point was to soften the ground, to change the narrative, to get people talking about money, and who has it, in a different way. What’s necessary, of course, for his budget to be taken seriously is to have the president demonstrate that he takes his budget seriously. This means getting out there and hammering away at what an obscenity the carried-interest loophole really is, and how unpatriotic off-shoring profits should be regarded by anyone in this country struggling to get by. This means pinning the rush toward plutocracy on the Republican side, and on the conservative movement that is the party’s only life force. He has to realize that, sometimes, on some issues, and in doing it the right way, talking the talk is the same as walking the walk.

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