President Barack Obama today proposed an FY 2013 federal budget that calls for $3.8 trillion in overall federal spending for that year. The Administration is projecting a $1.33 trillion federal deficit for current FY 2012, which ends September 30, or 8.5 percent of GDP. The Administration is projecting a $905 billion federal deficit for FY 2013, or 5.5 percent of GDP.
The Administration proposes $3 trillion in deficit reduction over ten years, of which $1.5 trillion would come from increases in certain business and individual taxes. The Administration projects that under the President's proposals the federal deficit would be reduced to three percent of GDP by FY 2018.
The Administration's budget features tax proposals President Obama outlined in his recent State of the Union address, including new tax incentives for domestic manufacturing and elimination of "tax deductions for shipping jobs overseas." Many of the business and individual tax increase proposals in the President's budget include a number of "loophole closers" and other revenue changes that have been previously proposed by the Administration. The budget also contains several new revenue-raising proposals (listed below).