President Obama has unveiled a $4 trillion budget proposal for next year Congress that calls for raising taxes on the wealthy and corporations in order to help fund education and fix crumbling infrastructure. The plan includes tax cuts for some poor and middle-class families. It also seeks to recoup losses from corporations that stash an estimated $2 trillion overseas by taxing such earnings at 14 percent, still less than half of the 35 percent rate for profits made in the United States. Obama’s proposed budget also takes aim at the high cost of prescription drugs, proposes a new agency to regulate food safety, and seeks $1 billion to curb immigration from Central America. It also calls for a 4.5 percent increase in military spending, including a $534 billion base budget for the Pentagon, plus $51 billion to fund U.S. involvement in Syria, Iraq and Afghanistan. Speaking at the Department of Homeland Security, Obama said across-the-board cuts known as sequestration would hurt the military. We speak to economist Dean Baker, co-director of the Center for Economic and Policy Research and author of “Getting Back to Full Employment: A Better Bargain for Working People.”
Dean Baker, economist, co-director of the Center for Economic and Policy Research and author ofGetting Back to Full Employment: A Better Bargain for Working People.