Obama’s plan for €4 trillion budget sets up battle with Republicans

President Barack Obama yesterday proposed a $3.99 trillion budget for fiscal year 2016 that sets up a battle with Republicans over programmes to boost the middle class that are funded by higher taxes on corporations and wealthy Americans.

The budget foresees a $474bn deficit, 2.5% of GDP. It projects deficits stabilising at that rate over a 10-year period, officials said.

Obama’s budget fleshes out proposals from his State of the Union address last month and helps highlight Democratic priorities for the last two years of his presidency and the beginning of the 2016 presidential campaign.