Obama Budget Speech: Highlights

Obama budget speech:

1) Will "find additional savings in our defense budget." The Defense Secretary, Joint Chiefs will conduct review of America's changing role in world.

2) Will "further reduce healthcare spending in our budget...Will reduce wasteful subsidies..cut spending on prescription drugs..."

3) "But let me be absolutely clear: I will preserve these health care programs as a promise we make to each other in this society. I will not allow Medicare to become a voucher program that leaves seniors at the mercy of the insurance industry, with a shrinking benefit to pay for rising costs. I will not tell families with children who have disabilities that they have to fend for themselves. We will reform these programs, but we will not abandon the fundamental commitment this country has kept for generations."

4) "Around two-thirds of our budget is spent on Medicare, Medicaid, Social Security, and national security. Programs like unemployment insurance, student loans, veterans' benefits, and tax credits for working families take up another 20%. What's left, after interest on the debt, is just 12 percent for everything else. That's 12 percent for all of our other national priorities like education and clean energy; medical research and transportation; food safety and keeping our air and water clean. "

5) Will reduce spending in the tax code: refuses to renew tax cuts for the wealthiest Americans. Will seek to limit itemized deductions for the wealthiest 2 percent of Americans.

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