President Obama’s Budget Proposal: Focus on Middle Class and Budget Expansion

Published in Sankei Shimbun
(Japan) on 3 February 2015
by Ogumo Norio (link to originallink to original)
Translated from by Stephanie Sanders. Edited by Bora Mici.
U.S. President Obama submitted his budget proposal for fiscal year 2016 (October 2015 - September 2016) to Congress on Feb. 2. In an address held in Washington, D.C. concerning the budget proposal, the president appealed for a budget expansion policy that would emphasize support for the middle class. He expressed a desire to reduce America's deeply rooted economic disparities. On the other hand, Republicans — who occupy the majority and wield the right to make changes to the budget proposal — are strongly opposed to budget expansion, and an intense, heated discussion is unfolding focused on the 2016 presidential election.

Mr. Obama called forcefully for economic policies supporting the middle class that he had also proposed in his State of the Union address in January, asking "...are we going to build an economy where everyone who works hard has a chance to get ahead?"

Mr. Obama included several support measures for the middle class in his $3.9 trillion — roughly 470 trillion yen — budget proposal, such as the establishment of a $500 tax credit for working married couples. At the same time, he outlined a liberal-style tax policy toward the wealthy that would strengthen the taxation of dividends and capital appreciation from investments, while redistributing the funds collected from the rich to the middle class.

The promise of the U.S. economy has been apparent since last year, but economic disparities are thought to be on an expanding trend. In a report released by the U.S. Federal Reserve Bank last September, although the annual household income of the top 10 percent increased in net assets by 13 percent between 2010 and 2013, the annual income of the bottom 25 percent fell by 10 percent. This shows a phenomenon in which the income level of the rich is continuing to increase.

For Mr. Obama, who has produced economic recovery since the recession following the financial crisis, reducing income disparity is the remaining issue. This time, he presented the budget proposal as a prescription for it.

However, Congress — held by the Republicans — is emphasizing Mr. Obama's limitations, especially his inability to resolve income disparities. House Ways and Means Chairman Paul Ryan criticized Mr. Obama's Feb. 2 address based on shortcomings, such as the weakness of a wage increase in the U.S. economy, saying, "We’re six years into the Obama economic policies, and he’s proposing more of the same, more tax increases that kill investment and jobs, and policies which are hardly aspirational."

On the other hand, Mr. Obama and Republicans also share some common interests. Both Mr. Obama — who wants to expand the budget — and Republicans — who would like to guarantee the defense budget — would like to avoid in fiscal year 2016 a return of the forced budget cuts that they were able to mitigate in fiscal years 2014 and 2015.

The policies of both parties are similar, even on strengthened infrastructure investment and expansion of tax deductions for low-income earners with no children, and The New York Times (online edition) stated that "buried in the document are kernels of proposals that could take root even with a hostile Republican Congress."

However, precisely because the debate over the 2016 budget is directly connected to economic policy issues in the 2016 presidential election, neither side can show any weakness. There will no doubt be intense sparks in the future over points of contention concerning the scale of the budget and deficit.


中間層重視・歳出は拡大…オバマ氏と共和党、大統領選へ激論必至
2015.2.3 21:48

 【ワシントン=小雲規生】オバマ米大統領は2日、2016会計年度(15年10月~16年9月)の予算教書を議会に提出した。ワシントン市内で行った予算教書に関する演説では、中間層支援に重点を置く歳出拡大路線をアピール。米国で根強い経済格差の解消に意欲をみせた。一方、予算編成権を握る議会で多数派を占める共和党は歳出拡大に強く反発しており、16年の大統領選を見据えた激しい論戦が繰り広げられそうだ。

 「一生懸命働く全ての人が前進できる経済を築こう」。オバマ氏は2日の演説で、1月の一般教書でも示した中間層重視の経済政策を声高に訴えた。

 オバマ氏は歳出総額3兆9990億ドル(約470兆円)の予算教書に、共働き夫婦への500ドルの税額控除の新設など数多くの中間層支援策を盛り込んだ。同時に富裕層への増税策として投資からの配当や値上がり益への課税強化なども打ち出し、富裕層から集めた資金を中間層に再分配するリベラル色を鮮明にした。
 
米国経済は昨年から好調さが目立っているが、格差は拡大傾向にあるとされる。米連邦準備制度理事会(FRB)が昨年9月に発表した調査では、純資産で上位10%の世帯の13年の年収は10年比で13%増えたが、下位25%の年収は10%減。富裕層ほど収入が増えていく現象がみてとれる。

 金融危機後の不況から経済を回復させてきたオバマ氏にとって、格差解消は残された課題。そのための処方箋として示したのが今回の予算教書だ。

 しかし、議会を握る共和党は、格差問題を解消できていないことこそがオバマ氏の限界だと追及する。ライアン下院歳入委員長は2日の声明で、米国経済が抱える賃金上昇の弱さや職探しを諦めた人の多さといった弱点を踏まえ、「オバマ氏は6年間、高い課税と歳出拡大を追求し、米国経済が負担を負わされてきた。今回の予算教書もほぼ同じ内容だ」と批判した。

 半面、オバマ氏と共和党の間には共通の利益も存在する。与野党合意により14、15年度予算で緩和された歳出強制削減が16年度で復活することは、歳出を拡大したいオバマ氏も国防費を確保したい共和党も回避したい事態だ。

 インフラ投資強化や子供のいない低所得者への所得控除拡充でも両者の政策は似ており、米紙ニューヨーク・タイムズ(電子版)は「予算教書には敵対的な共和党ともつながりを持てる提案が埋め込まれている」とする。

 ただし16年度予算をめぐる論戦は16年の大統領選での経済政策の争点に直結するだけに、両者とも弱みは見せられない。今後も歳出規模や財政赤字の削減ペースなどの対立点で激しい火花が散るのは間違いない。
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