President Barack Obama's most recent budget request will reduce borrowing by $1.1 trillion over the next decade compared with current law — almost entirely through higher taxes on the rich, large estates and smokers, congressional budget analysts said Friday.
In addition to raising nearly $1 trillion in new taxes, the president's blueprint will cut spending modestly, according to the analysis by the nonpartisan Congressional Budget Office (CBO).
However, those savings include money the government never intended to spend, such as a contingency fund for the wars in Iraq and Afghanistan and nearly $300 billion in unneeded disaster relief.