In addition, the White House wants to reform the individual tax code in a way that "eliminates inefficient and unfair tax breaks for millionaires while making all tax breaks at least as good for the middle class as for the wealthy." Obama used an appearance before students at Northern Virginia Community College to unveil the budget and highlight a $8 billion proposal that aims at boosting the ability of the nation's community colleges to train students for the jobs of the future. But the budget forecasts a deficit for fiscal year 2012 that will top $1.3 trillion, before falling in 2013 to $901 billion, or 5.5% of gross domestic product. Taxes: The budget proposes a tax hike of $1.5 trillion, which includes a provision that will allow the Bush tax cuts to expire for high-income earners, a long-held Obama position.
– President Obama officially unveiled his $3.8 trillion budget today, and as expected it draws a 2012 battle line, calling for higher taxes on the wealthy combined with spending measures intended to bolster the economy, the AP reports. "We built this budget around the idea that our country has always done best when everyone gets a fair shot, everyone does their fair share, and everyone plays by the same rules," Obama said, according to CNN. "This is not about class warfare. This is about the nation's welfare." Obama's budget would institute the so-called "Buffett Rule," replacing the Alternative Minimum Tax with a 30% rate on income above $1 million. It would also bump the capital gains tax rate up to 20%, and allow Bush-era tax cuts for the wealthy to expire. Obama unveiled the budget in a speech at Northern Virginia Community College, where he focused on a proposal to spend $8 billion boosting community colleges, Bloomberg reports. Obama estimates that under his budget the deficit would rise to $1.3 trillion in 2012, before falling to $901 billion in 2013. But the Wall Street Journal points out that Obama used cautious economic forecasts, ignoring recent employment gains. Republicans naturally bashed the budget for failing to address fiscal issues. "It seems like the president has decided again to campaign instead of govern," said Paul Ryan. For more on the budget particulars, click here.