Obama Budget: Record Spending, Record Deficit

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WASHINGTON - The U.S. Congress is getting its own look at President Barack Obama's massive $3.8 trillion budget and its record-breaking $1.6 trillion deficit.

Whether or not Congress approves the new White House budget or one mainly written on Capitol Hill, one thing is certain -- the government will continue to operate in the red for years.

Obama: U.S. Should Stop Going into Debt

Next year alone, the government would have to borrow a third of what it spends, running a deficit of $1.3 trillion.

The president says America should stop going into debt.

Click play for more analysis with Phil Kerpin of Americans for Prosperity, following John Jessup's report.

"It's time to save what we can, spend what we must, and live within our means once again," Obama said.

However, while the president's record budget has many goals, it also has plenty of critics.

"This $3.8 trillion budget is another sea of red ink and record debt that has come to characterize this administration," Sen. Jon Kyl, R-Ariz. said.

Much of the spending measures would go toward boosting the economy and creating jobs.

However, the plan also calls for increasing taxes by more than a trillion dollars over the next decade by increasing taxes on businesses and wealthy Americans.

The president wants to generate new revenue by restricting the ability of international companies to defer taxes on overseas profits.

He is also proposing nearly $40 billion in tax increases on oil, gas and coal companies.

Obama wants to end the Bush tax cuts for singles making $200,000 a year or for couples making $250,000.

He also wants to limit the amount of itemized deductions high income earners can claim for charitable donations, mortgage interest and state and local taxes.

GOP: Obama Proposals are Job Killers

But when it comes to the taxes and the economy, Republicans believe the president has got it all wrong.

"Many of the proposals that the administration has put forward are job killers," Sen. John Thune, R- S.D., said. They have taken a step to the left."

To mute opposition to the mammoth budget, Obama is advocating pay-as-you-go funding along with a three-year spending freeze for non-security-related domestic programs.

"I'm willing to reduce waste in programs I care about, and I'm asking members of Congress to do the same," Obama explained.

But for some, it's too little, too late.

"A freeze is good, so why delay it a year?" Rep. Paul Ryan, R-Wis., challenged. "I mean, the president's saying, 'Don't do a freeze now. Do it next year.' And what matters in Congress when it comes to the budget is the first year spending levels set by Congress."

Meanwhile, the White House and congressional Democrats are trying curb the deficit while also trying to stabilize the economy and create jobs, knowing the two are increasingly becoming hot button political issues this election year.

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John Jessup serves as the main news anchor for CBN, a position he assumed after 10 years reporting for the network in Washington, D.C. His work in broadcast news has earned him several awards in reporting, producing, and coordinating elections coverage. Follow John on Twitter @JohnCBNNews and "like" him at Facebook.com/John.V.Jessup.