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Things you should know about budget


The budget offers new tax breaks and incentives for small businesses and includes money for clean energy technology.
The budget offers new tax breaks and incentives for small businesses and includes money for clean energy technology.
STORY HIGHLIGHTS
  • Small businesses that hire new employees or boost wages would get a tax break
  • Funding for Pell grants to help college students would increase by $17 billion
  • President Obama would spend $734 million for full body scanners at airports

Washington (CNN) -- President Obama on Monday unveiled a $3.8 trillion budget for next year. Here are some key points. Remember, these are Obama's suggestions. Congress controls the purse strings.

Still a little extra in your paycheck

The Making Work Pay tax breaks would be extended for a year. These were part of last year's stimulus and resulted in slightly higher paychecks for 110 million families, the White House said.

More money for education

Obama wants $3 billion more for elementary and secondary education programs and $1.35 billion for his Race to the Top program. Pell grants, which help students pay for college, would increase by $17 billion.

Big-shovel items

The president is seeking more than $100 billion for state and local infrastructure projects and $4 billion for national and regional infrastructure work.

Debt reduction

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The president's budget would reduce the nation's debt by $1.2 trillion over the next 10 years. Obama would let the Bush tax cuts expire for high-income families, impose a "financial crisis responsibility fee" on large banks and end fossil-fuel tax subsidies for oil, gas and coal companies. Discretionary spending that is not defense-related would get a three-year cap, saving $250 billion over the next 10 years. Read more

Big incentives for small business

Small businesses would get a $5,000 tax credit for every net new employee hired this year. Startups launched this year would be eligible to halve the tax credit. Businesses also would be reimbursed for Social Security taxes they pay on increased payrolls this year. Companies could earn the credit by raising pay or increasing hours worked. Read more

Defense

To pay for wars in Afghanistan and Iraq, Obama is seeking $33 billion in supplemental funds for this budget year and $159.3 billion for next year's. Funding for military families would increase 3 percent to $8.8 billion. The president would appropriate in advance $50.6 billion for veterans' medical care.

Research and development

Clean energy research and development would get $6 billion and civilian research and development would get an extra $3.7 billion.

Security at home

The administration seeks $734 million to install 1,000 new full body scanners at airports. Overall Department of Homeland Security funding would increase 2 percent to $43.6 billion.

What do you think about the budget?

Proposed budget savings

• Discontinue the program to build a repository for nuclear waste at Yucca Mountain, Nevada. Savings in 2011: $197 million

End oil and gas company tax preferences. Savings in 2011: $2.6 billion. Over 10 years: $36.5 billion

• End coal subsidies. Savings over 10 years: $2.3 billion

• Terminate program to develop an alternative engine program for the Joint Strike Fighter. Savings in 2011: $465 million

• Terminate production of C-17 transport. Savings in 2010: $2.5 billion

• Cancel the Constellation Systems program intended to return astronauts to the moon by 2020. Savings per year: $2.5 billion to $5 billion Read more

• Eliminate subsidies to student loan providers and increase the Department of Education's capacity to make loans directly to students. Savings over 10 years: $43 billion

• Terminate program to build EP-X manned airborne intelligence, surveillance and reconnaissance aircraft. Savings in 2011: $10 million

• End grants to manufacturers of worsted wool. Annual savings: $5 million

• Eliminate grant program for inter-city bus security. Annual savings: $12 million

• End competitive grant program for local communities to reduce greenhouse gas emissions. Savings in 2011: $10 million

• Terminate the Navy's Next Generation Cruiser. Savings in 2011: $46 million

• End Corps of Engineers low-priority construction projects. Savings in 2011: $214 million

• Terminate Christopher Columbus Fellowship Foundation, aimed at fostering "new discoveries in all fields of endeavor for the benefit of mankind." Savings in 2010: $1 million

 
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