2012 United States federal budget
Encyclopedia
The 2012 United States federal budget is the United States federal budget
to fund government operations for the fiscal year 2012, which is October 2011–September 2012. The budget is the subject of a spending request by President
Barack Obama
, while the Republican-held House of Representatives
, coming off of a major victory in the 2010 Congressional elections
associated with the Tea Party movement
, announced a competing plan
for the 2012 budget. The budget plans are intended to focus on deficit
reduction, but differ in their changes to taxation
, entitlement programs, defense spending
, and research funding. The budget was greatly affected by the Budget Control Act of 2011
, which was passed in August 2011 as a resolution to the debt-ceiling crisis
, which mandated budget cuts over the subsequent ten years beginning with Fiscal Year 2012. The actual appropriations for Fiscal Year 2012 must be authorized by the full Congress
before the budget can take effect, according to the United States budget process
.
, to recommend steps that could be taken to reduce future budget deficits. The commission released its report on November 10, 2010, which recommended deep domestic and military spending cuts, reforming the tax system by eliminating many tax breaks in return for lower overall rates, and reducing benefits for Social Security and Medicare. The plan did not receive the supermajority vote within the commission which it needed to be directly sent to Congress, and portions of the plan were rejected by both parties.
The Obama administration proposed his 2012 budget on February 14, 2011. Obama's budget proposal aimed to reduce annual deficits to more sustainable levels by making selective cuts in spending, while increasing support in specific areas such as education and clean energy to foster long-term economic growth. The plan did not contain specific proposals to rein in spending on entitlement programs such as Medicare
, Medicaid
, and Social Security
, which are expected to make up much of the increase in the deficit in future years. The budget represented a shift from the Obama administration's strategy in previous years of using increased government spending, such as the American Recovery and Reinvestment Act of 2009
, to combat the late 2000s recession. The 2012 budget plan was instead projected to reduce deficits by $1.1 trillion over the next ten years. Republicans criticized the plan for not going far enough to reduce future deficits. A motion to proceed on President Obama's 2012 budget proposal was defeated in the Senate by a margin of 0-97 votes on May 25, 2011, the same day that the Ryan budget was also defeated.
A competing plan, called The Path to Prosperity
, was announced by House Republicans, led by Representative Paul Ryan
, on April 5, 2011. This plan would reportedly cut $5.8 trillion in spending over ten years, but would also reduce tax income by $4.2 trillion below current projections. The plan would make no further reduction in defense spending
beyond the Obama administration's plan, but would make major changes to Medicare, Medicaid, and Social Security, which was expected to pass more of the cost of these programs onto individuals. It would also cut energy research and other applied research and development
. This plan was criticized for disproportionately cutting programs which benefit the disadvantaged and stifling innovation, while not cutting defense spending further and containing deep tax cuts. The House Republican plan was defeated in the Senate by a margin of 40-57 votes on May 25, 2011.
In response to the Republican plan and a recent deal on the 2011 budget
, President Obama on April 13, 2011 presented an alternative plan in a major policy speech. This new plan would cut deficits by $4 trillion over 12 years through a combination of broad spending cuts and tax increases, including the expiration of the Bush tax cuts
for incomes over $200,000 and proposed a cap on increases in Medicare and Medicaid spending, to be paid for by individuals. Obama criticized the Republican plan for enriching the wealthy through tax cuts while placing a greater economic burden on the elderly through Medicare cuts. Obama's plan was criticized by Republicans for its large cuts in defense spending and for its lack of specific detail. On June 23, at a hearing of the Budget Committee, CBO director Douglas Elmendorf was asked what his agency made of the proposals in that presidential address. “We don’t estimate speeches,” he said. “We need much more specificity than was provided in that speech."
, by a margin of 234–190 which would require $111 billion in cuts in 2012 spending levels, exempting defense, Medicare, and Social Security from these cuts, and would limit subsequent federal spending to about 20% of the gross national product as compared to the current 24%. It did not immediately increase the debt limit, but would have required Congress to pass a Balanced Budget Amendment
to the United States Constitution
before increasing the debt limit. The bill was tabled
by a vote of 51–46 in the Senate on July 22, and thus defeated. An alternate plan proposed by the bipartisan Gang of Six senators and favored by the Obama administration would contain about $3.7 trillion in deficit reduction over the next decade, including both new revenue and large spending cuts, including in entitlement healthcare and defense, failed to gain traction.
Two rival plans were then prepared by the Senate Democrats and House Republicans. The Democratic plan would immediately raise the debt limit by $2.7 trillion, enough to last beyond the 2012 elections
, and would decrease spending by $900 billion over ten years. The Republican plan would cut a total of $850 billion over ten years, and would raise the debt limit in two stages: by $1 trillion immediately, enough to last until early 2012, and then would form a bipartisan committee to recommend the second half of the budget cuts, which upon being passed by Congress would increase the debt limit by another $1.6 trillion. Neither plan included revenue increases or cuts to entitlement programs. The vote on the Republican plan was delayed several times as more conservative members of the caucus refused to vote for it. After being altered to again require passage of a Balanced Budget Amendment before the second stage of debt limit increases, it passed the House 218–210, with 22 Republicans opposing the bill. It was defeated in the Senate two hours later by a vote of 59–41, as the Democratic plan was prepared to be taken up there.
On July 31, 2011, it was announced that President Obama and the leadership of both legislative chambers had reached a deal on the debt limit legislation. The deal guaranteed $2.4 trillion in immediate and eventual debt limit increases. It mandated $917 billion in spending cuts over ten years, of which $21 billion would be included in the FY2012 budget. It would then give Congress a choice between either accepting the recommendation of a Joint Select Committee on Deficit Reduction which would cut the deficit by $1.2–1.5 trillion through spending cuts and/or revenue increases, or accepting automatic budget cuts to national security funding (including both defense spending) and to Medicare, which would start in the FY2013 budget. Congress would also be required to vote on a Balanced Budget Amendment. On August 1, the Budget Control Act of 2011
passed the House 269–161, with 66 Republicans and 95 Democrats voting against the bill. On August 2, it passed in the Senate 74–26, and was signed into law by President Obama the same day.
to fund the government temporarily. The resolution under consideration would provide funding through November 18, 2011 with an across-the-board reduction of 1.503% below the 2011 budget levels. However, a dispute arose between the Republican-led House and the Democrat-led Senate over the amount of additional funding for the Federal Emergency Management Agency
for costs associated with relief from Hurricane Irene, and whether this extra funding should be partially offset with cuts elsewhere, mainly to a program to fund development of fuel-efficient automobiles. The Senate rejection of the House bill on September 23, 2011 raised the possibility of a government shutdown
on October 1.
However, the revelation that FEMA would not in fact run out of money before the end of they year allowed a pair of continuing resolutions to be passed by the Senate on September 26: one lasting until October 4, 2011 to give the then-out-of-session House of Representatives time to consider the second resolution, which funds the government through the first seven weeks of the 2012 fiscal year, until November 18, 2011. The House passed the short-term resolution on September 29, 2011 by unanimous consent
in an unusual example of passing legislation during a pro forma session. After the House came back into normal session, the second continuing resolution was passed by a vote of 352–66 on October 4, 2011.
regular budget, but are included in Overseas Contingency Operations.
This budget request is broken down by the following expenditures:
Mandatory spending: $2.382 trillion (-3.2%)
Discretionary spending: $1.344 trillion (-3.1%)
United States federal budget
The Budget of the United States Government is the President's proposal to the U.S. Congress which recommends funding levels for the next fiscal year, beginning October 1. Congressional decisions are governed by rules and legislation regarding the federal budget process...
to fund government operations for the fiscal year 2012, which is October 2011–September 2012. The budget is the subject of a spending request by President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
, while the Republican-held House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
, coming off of a major victory in the 2010 Congressional elections
United States House of Representatives elections, 2010
The 2010 United States House of Representatives elections, also known as the 2010 midterm elections, were held on November 2, 2010, at the midpoint of President Barack Obama's first term in office. Voters of the 50 U.S. states chose 435 U.S. Representatives. Voters of the U.S...
associated with the Tea Party movement
Tea Party movement
The Tea Party movement is an American populist political movement that is generally recognized as conservative and libertarian, and has sponsored protests and supported political candidates since 2009...
, announced a competing plan
The Path to Prosperity
The Path to Prosperity was the Republican Party's budget proposal for the year 2012. It competed with budget proposals outlined separately by President Barack Obama. and the Congressional Progressive Caucus. The Republican proposal was formalized and passed by the House of Representatives on...
for the 2012 budget. The budget plans are intended to focus on deficit
United States public debt
The United States public debt is the money borrowed by the federal government of the United States at any one time through the issue of securities by the Treasury and other federal government agencies...
reduction, but differ in their changes to taxation
Taxation in the United States
The United States is a federal republic with autonomous state and local governments. Taxes are imposed in the United States at each of these levels. These include taxes on income, property, sales, imports, payroll, estates and gifts, as well as various fees.Taxes are imposed on net income of...
, entitlement programs, defense spending
Military budget of the United States
The military budget is that portion of the United States discretionary federal budget that is allocated to the Department of Defense, or more broadly, the portion of the budget that goes to any defense-related expenditures...
, and research funding. The budget was greatly affected by the Budget Control Act of 2011
Budget Control Act of 2011
The Budget Control Act of 2011 was passed by the 112th United States Congress signed into law by President Barack Obama. It brought conclusion to the 2011 United States debt ceiling crisis, which had threatened to lead the United States into sovereign default on or about August 3, 2011.The law...
, which was passed in August 2011 as a resolution to the debt-ceiling crisis
United States debt-ceiling crisis
The United States debt-ceiling crisis was a financial crisis in 2011 that started as a debate in the United States Congress about increasing the debt ceiling. The immediate crisis ended when a complex deal was reached that raised the debt ceiling and reduced future government spending...
, which mandated budget cuts over the subsequent ten years beginning with Fiscal Year 2012. The actual appropriations for Fiscal Year 2012 must be authorized by the full Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
before the budget can take effect, according to the United States budget process
United States budget process
The process of creating the budget for the United States government is known as the budget process. The framework used by Congress to formulate the budget was established by the Budget and Accounting Act of 1921, the Congressional Budget and Impoundment Control Act of 1974, and by other budget...
.
Early proposals
In February 2010, President Obama formed a bipartisan commission, called the Bowles–Simpson CommissionNational Commission on Fiscal Responsibility and Reform
The National Commission on Fiscal Responsibility and Reform is a Presidential Commission created in 2010 by President Barack Obama to identify "…policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run."...
, to recommend steps that could be taken to reduce future budget deficits. The commission released its report on November 10, 2010, which recommended deep domestic and military spending cuts, reforming the tax system by eliminating many tax breaks in return for lower overall rates, and reducing benefits for Social Security and Medicare. The plan did not receive the supermajority vote within the commission which it needed to be directly sent to Congress, and portions of the plan were rejected by both parties.
The Obama administration proposed his 2012 budget on February 14, 2011. Obama's budget proposal aimed to reduce annual deficits to more sustainable levels by making selective cuts in spending, while increasing support in specific areas such as education and clean energy to foster long-term economic growth. The plan did not contain specific proposals to rein in spending on entitlement programs such as Medicare
Medicare (United States)
Medicare is a social insurance program administered by the United States government, providing health insurance coverage to people who are aged 65 and over; to those who are under 65 and are permanently physically disabled or who have a congenital physical disability; or to those who meet other...
, Medicaid
Medicaid
Medicaid is the United States health program for certain people and families with low incomes and resources. It is a means-tested program that is jointly funded by the state and federal governments, and is managed by the states. People served by Medicaid are U.S. citizens or legal permanent...
, and Social Security
Social Security (United States)
In the United States, Social Security refers to the federal Old-Age, Survivors, and Disability Insurance program.The original Social Security Act and the current version of the Act, as amended encompass several social welfare and social insurance programs...
, which are expected to make up much of the increase in the deficit in future years. The budget represented a shift from the Obama administration's strategy in previous years of using increased government spending, such as the American Recovery and Reinvestment Act of 2009
American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009, abbreviated ARRA and commonly referred to as the Stimulus or The Recovery Act, is an economic stimulus package enacted by the 111th United States Congress in February 2009 and signed into law on February 17, 2009, by President Barack Obama.To...
, to combat the late 2000s recession. The 2012 budget plan was instead projected to reduce deficits by $1.1 trillion over the next ten years. Republicans criticized the plan for not going far enough to reduce future deficits. A motion to proceed on President Obama's 2012 budget proposal was defeated in the Senate by a margin of 0-97 votes on May 25, 2011, the same day that the Ryan budget was also defeated.
A competing plan, called The Path to Prosperity
The Path to Prosperity
The Path to Prosperity was the Republican Party's budget proposal for the year 2012. It competed with budget proposals outlined separately by President Barack Obama. and the Congressional Progressive Caucus. The Republican proposal was formalized and passed by the House of Representatives on...
, was announced by House Republicans, led by Representative Paul Ryan
Paul Ryan
Paul Ryan may refer to:* Paul Ryan , member of the U.S. House of Representatives* Paul Ryan , music agent for The Agency, former Cradle of Filth guitarist* Paul Ryan , comics artist...
, on April 5, 2011. This plan would reportedly cut $5.8 trillion in spending over ten years, but would also reduce tax income by $4.2 trillion below current projections. The plan would make no further reduction in defense spending
Military budget of the United States
The military budget is that portion of the United States discretionary federal budget that is allocated to the Department of Defense, or more broadly, the portion of the budget that goes to any defense-related expenditures...
beyond the Obama administration's plan, but would make major changes to Medicare, Medicaid, and Social Security, which was expected to pass more of the cost of these programs onto individuals. It would also cut energy research and other applied research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...
. This plan was criticized for disproportionately cutting programs which benefit the disadvantaged and stifling innovation, while not cutting defense spending further and containing deep tax cuts. The House Republican plan was defeated in the Senate by a margin of 40-57 votes on May 25, 2011.
In response to the Republican plan and a recent deal on the 2011 budget
2011 United States federal budget
The 2011 United States federal budget is the United States federal budget to fund government operations for the fiscal year 2011, which is October 2010–September 2011. The budget is the subject of a spending request by President Barack Obama...
, President Obama on April 13, 2011 presented an alternative plan in a major policy speech. This new plan would cut deficits by $4 trillion over 12 years through a combination of broad spending cuts and tax increases, including the expiration of the Bush tax cuts
Bush tax cuts
The Bush tax cuts refers to changes to the United States tax code passed during the presidency of George W. Bush and extended during the presidency of Barack Obama that generally lowered tax rates and revised the code specifying taxation in the United States...
for incomes over $200,000 and proposed a cap on increases in Medicare and Medicaid spending, to be paid for by individuals. Obama criticized the Republican plan for enriching the wealthy through tax cuts while placing a greater economic burden on the elderly through Medicare cuts. Obama's plan was criticized by Republicans for its large cuts in defense spending and for its lack of specific detail. On June 23, at a hearing of the Budget Committee, CBO director Douglas Elmendorf was asked what his agency made of the proposals in that presidential address. “We don’t estimate speeches,” he said. “We need much more specificity than was provided in that speech."
Implications of debt limit deal
A controversy arose in July 2011 over the raising of the federal debt limit, with Republicans in Congress demanding spending cuts in the 2012 and subsequent budgets in return for raising the debt limit. On July 19, 2011, the Republican-led House passed a bill, the Cut, Cap and Balance ActCut, Cap and Balance Act
The proposed Cut, Cap and Balance Act of 2011 was a bill put forward in the 112th United States Congress by Republicans during the 2011 U.S. debt ceiling crisis...
, by a margin of 234–190 which would require $111 billion in cuts in 2012 spending levels, exempting defense, Medicare, and Social Security from these cuts, and would limit subsequent federal spending to about 20% of the gross national product as compared to the current 24%. It did not immediately increase the debt limit, but would have required Congress to pass a Balanced Budget Amendment
Balanced Budget Amendment
A balanced-budget amendment is a constitutional rule requiring that the state cannot spend more than its income. It requires a balance between the projected receipts and expenditures of the government....
to the United States Constitution
United States Constitution
The Constitution of the United States is the supreme law of the United States of America. It is the framework for the organization of the United States government and for the relationship of the federal government with the states, citizens, and all people within the United States.The first three...
before increasing the debt limit. The bill was tabled
Table (parliamentary procedure)
In parliamentary procedure, a motion to table has two different and contradictory meanings:*In the United States, table usually means the motion to lay on the table or motion to postpone consideration; a proposal to suspend consideration of a pending motion...
by a vote of 51–46 in the Senate on July 22, and thus defeated. An alternate plan proposed by the bipartisan Gang of Six senators and favored by the Obama administration would contain about $3.7 trillion in deficit reduction over the next decade, including both new revenue and large spending cuts, including in entitlement healthcare and defense, failed to gain traction.
Two rival plans were then prepared by the Senate Democrats and House Republicans. The Democratic plan would immediately raise the debt limit by $2.7 trillion, enough to last beyond the 2012 elections
United States elections, 2012
The 2012 United States elections will be held on Tuesday, November 6, 2012. The 57th quadrennial presidential election will be held on this date, coinciding with Senate elections where 33 races will occur, as well as House of Representatives elections to elect the members for the 113th Congress...
, and would decrease spending by $900 billion over ten years. The Republican plan would cut a total of $850 billion over ten years, and would raise the debt limit in two stages: by $1 trillion immediately, enough to last until early 2012, and then would form a bipartisan committee to recommend the second half of the budget cuts, which upon being passed by Congress would increase the debt limit by another $1.6 trillion. Neither plan included revenue increases or cuts to entitlement programs. The vote on the Republican plan was delayed several times as more conservative members of the caucus refused to vote for it. After being altered to again require passage of a Balanced Budget Amendment before the second stage of debt limit increases, it passed the House 218–210, with 22 Republicans opposing the bill. It was defeated in the Senate two hours later by a vote of 59–41, as the Democratic plan was prepared to be taken up there.
On July 31, 2011, it was announced that President Obama and the leadership of both legislative chambers had reached a deal on the debt limit legislation. The deal guaranteed $2.4 trillion in immediate and eventual debt limit increases. It mandated $917 billion in spending cuts over ten years, of which $21 billion would be included in the FY2012 budget. It would then give Congress a choice between either accepting the recommendation of a Joint Select Committee on Deficit Reduction which would cut the deficit by $1.2–1.5 trillion through spending cuts and/or revenue increases, or accepting automatic budget cuts to national security funding (including both defense spending) and to Medicare, which would start in the FY2013 budget. Congress would also be required to vote on a Balanced Budget Amendment. On August 1, the Budget Control Act of 2011
Budget Control Act of 2011
The Budget Control Act of 2011 was passed by the 112th United States Congress signed into law by President Barack Obama. It brought conclusion to the 2011 United States debt ceiling crisis, which had threatened to lead the United States into sovereign default on or about August 3, 2011.The law...
passed the House 269–161, with 66 Republicans and 95 Democrats voting against the bill. On August 2, it passed in the Senate 74–26, and was signed into law by President Obama the same day.
Initial continuing resolutions
Because the federal budget legislation was not expected to be enacted by the September 30, 2011 deadline, work began on a continuing resolutionContinuing resolution
A continuing resolution is a type of appropriations legislation used by the United States Congress to fund government agencies if a formal appropriations bill has not been signed into law by the end of the Congressional fiscal year...
to fund the government temporarily. The resolution under consideration would provide funding through November 18, 2011 with an across-the-board reduction of 1.503% below the 2011 budget levels. However, a dispute arose between the Republican-led House and the Democrat-led Senate over the amount of additional funding for the Federal Emergency Management Agency
Federal Emergency Management Agency
The Federal Emergency Management Agency is an agency of the United States Department of Homeland Security, initially created by Presidential Reorganization Plan No. 1 of 1978 and implemented by two Executive Orders...
for costs associated with relief from Hurricane Irene, and whether this extra funding should be partially offset with cuts elsewhere, mainly to a program to fund development of fuel-efficient automobiles. The Senate rejection of the House bill on September 23, 2011 raised the possibility of a government shutdown
Government shutdown
In U.S. politics, a government shutdown is a situation in which the government stops providing all but "essential" services. Typically, services that continue despite a shutdown include police, fire fighting, postal service, armed forces, utilities, air traffic management, and corrections.- Causes...
on October 1.
However, the revelation that FEMA would not in fact run out of money before the end of they year allowed a pair of continuing resolutions to be passed by the Senate on September 26: one lasting until October 4, 2011 to give the then-out-of-session House of Representatives time to consider the second resolution, which funds the government through the first seven weeks of the 2012 fiscal year, until November 18, 2011. The House passed the short-term resolution on September 29, 2011 by unanimous consent
Unanimous consent
In parliamentary procedure, unanimous consent, also known as general consent, or in the case of the parliaments under the Westminster system, leave of the house, is a situation in which no one present objects to a proposal. The chair may state, for instance: "If there is no objection, the motion...
in an unusual example of passing legislation during a pro forma session. After the House came back into normal session, the second continuing resolution was passed by a vote of 352–66 on October 4, 2011.
Budget legislation begins to be passed
On November 18, 2011, the first appropriations bill was enacted, the Consolidated and Further Continuing Appropriations Act, 2012. It included funding for Agriculture, Commerce/Justice/Science (CJS), and Transportation/Housing and Urban Development (THUD), as well as a continuing resolution providing funding for other departments until December 16, 2011. Nine further appropriations bills remain to be passed.Major initiatives
- The National Science FoundationNational Science FoundationThe National Science Foundation is a United States government agency that supports fundamental research and education in all the non-medical fields of science and engineering. Its medical counterpart is the National Institutes of Health...
's budget was increased 2.5%, to $7.03 billion. However, the Office of Science and Technology PolicyOffice of Science and Technology PolicyThe Office of Science and Technology Policy is an office in the Executive Office of the President , established by Congress on May 11, 1976, with a broad mandate to advise the President on the effects of science and technology on domestic and international affairs.The director of this office is...
's budget was cut by 32% to $4.5 million, in retaliation for the office allegedly ignoring a provision in 2011 budget legislation banning it from pursuing collaborations with China. Funding for the James Webb Space TelescopeJames Webb Space TelescopeThe James Webb Space Telescope , previously known as Next Generation Space Telescope , is a planned next-generation space telescope, optimized for observations in the infrared. The main technical features are a large and very cold 6.5 meter diameter mirror, an observing position far from Earth,...
, the successor to the Hubble Space TelescopeHubble Space TelescopeThe Hubble Space Telescope is a space telescope that was carried into orbit by a Space Shuttle in 1990 and remains in operation. A 2.4 meter aperture telescope in low Earth orbit, Hubble's four main instruments observe in the near ultraviolet, visible, and near infrared...
, was maintained, as was funding for the Joint Polar Satellite System.
Total revenues and spending
The Obama administration's original budget request contained $2.627 trillion in revenues and $3.729 trillion in outlays for 2012. The April 2011 Republican plan contained $2.533 trillion in revenues and $3.529 trillion in outlays.Total receipts
Estimated receipts for fiscal year 2012 are $2.627 trillion.| Item | February 2011 Obama administration request | April 2011 House Republican proposal | Enacted |
|---|---|
| Individual income tax Income tax in the United States In the United States, a tax is imposed on income by the Federal, most states, and many local governments. The income tax is determined by applying a tax rate, which may increase as income increases, to taxable income as defined. Individuals and corporations are directly taxable, and estates and... |
$1.141 trillion |
| Corporate income tax Corporate tax in the United States Corporate tax is imposed in the United States at the Federal, most state, and some local levels on the income of entities treated for tax purposes as corporations. Federal tax rates on corporate taxable income vary from 15% to 35%. State and local taxes and rules vary by jurisdiction, though many... |
$329 billion |
| Social Security Social Security (United States) In the United States, Social Security refers to the federal Old-Age, Survivors, and Disability Insurance program.The original Social Security Act and the current version of the Act, as amended encompass several social welfare and social insurance programs... and other payroll tax Payroll tax Payroll tax generally refers to two different kinds of similar taxes. The first kind is a tax that employers are required to withhold from employees' wages, also known as withholding tax, pay-as-you-earn tax , or pay-as-you-go tax... |
$925 billion |
| Excise tax | $103 billion |
| Customs Customs Customs is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, transports, personal effects and hazardous items in and out of a country... duties Duty (economics) In economics, a duty is a kind of tax, often associated with customs, a payment due to the revenue of a state, levied by force of law. It is a tax on certain items purchased abroad... |
$30.0 billion |
| Estate Inheritance tax An inheritance tax or estate tax is a levy paid by a person who inherits money or property or a tax on the estate of a person who has died... and gift tax Gift tax A gift tax is a tax imposed on the gratuitous transfer of ownership of property. The United States Internal Revenue Service says a gift is "Any transfer to an individual, either directly or indirectly, where full consideration is not received in return."When a taxable gift in the form of cash,... es |
$14.0 billion |
| Deposits of earnings and Federal Reserve System Federal Reserve System The Federal Reserve System is the central banking system of the United States. It was created on December 23, 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907... |
$66.0 billion |
| Other miscellaneous receipts | $20.0 billion |
Total spending
The President's budget for 2012 totals $3.729 trillion. Percentages in parentheses indicate percentage change compared to requested, not enacted, 2011 lavels. The Iraq War and the War in Afghanistan are not included in the Department of DefenseUnited States Department of Defense
The United States Department of Defense is the U.S...
regular budget, but are included in Overseas Contingency Operations.
This budget request is broken down by the following expenditures:
Mandatory spending: $2.382 trillion (-3.2%)
| Item | February 2011 Obama administration request | April 2011 House Republican proposal | Enacted |
|---|---|
| Social Security Social Security (United States) In the United States, Social Security refers to the federal Old-Age, Survivors, and Disability Insurance program.The original Social Security Act and the current version of the Act, as amended encompass several social welfare and social insurance programs... |
$761 billion (+2.6%) |
| Medicare Medicare (United States) Medicare is a social insurance program administered by the United States government, providing health insurance coverage to people who are aged 65 and over; to those who are under 65 and are permanently physically disabled or who have a congenital physical disability; or to those who meet other... |
$485 billion (-0.6%) |
| Medicaid Medicaid Medicaid is the United States health program for certain people and families with low incomes and resources. It is a means-tested program that is jointly funded by the state and federal governments, and is managed by the states. People served by Medicaid are U.S. citizens or legal permanent... and the State Children's Health Insurance Program State Children's Health Insurance Program The State Children's Health Insurance Program – later known more simply as the Children's Health Insurance Program – is a program administered by the United States Department of Health and Human Services that provides matching funds to states for health insurance to families with children... (SCHIP) |
$269 billion (-2.5%) |
| Unemployment/Welfare/Other mandatory spending | $612 billion (-14.0%) |
| Interest on National Debt | $242 billion (+17.1%) |
| Troubled Asset Relief Program | $13.0 billion (-54.0%) |
Discretionary spending: $1.344 trillion (-3.1%)
| Item | February 2011 Obama administration request | April 2011 House Republican proposal | Enacted |
|---|---|
| Department of Defense United States Department of Defense The United States Department of Defense is the U.S... |
$553.0 billion (+0.7%) |
| Overseas Contingency Operations War on Terrorism The War on Terror is a term commonly applied to an international military campaign led by the United States and the United Kingdom with the support of other North Atlantic Treaty Organisation as well as non-NATO countries... |
$118.0 billion (-26.0%) |
| Department of Health and Human Services | $79.9 billion (-1.8%) |
| Department of Education United States Department of Education The United States Department of Education, also referred to as ED or the ED for Education Department, is a Cabinet-level department of the United States government... |
$77.4 billion (+6.2%) |
| Department of Veterans Affairs United States Department of Veterans Affairs The United States Department of Veterans Affairs is a government-run military veteran benefit system with Cabinet-level status. It is the United States government’s second largest department, after the United States Department of Defense... |
$58.8 billion (+3.1%) |
| Department of Housing and Urban Development United States Department of Housing and Urban Development The United States Department of Housing and Urban Development, also known as HUD, is a Cabinet department in the Executive branch of the United States federal government... |
$49.8 billion (+0.5%) |
| Department of State United States Department of State The United States Department of State , is the United States federal executive department responsible for international relations of the United States, equivalent to the foreign ministries of other countries... and Other International Programs |
$50.1 billion (-0.9%) |
| Department of Homeland Security United States Department of Homeland Security The United States Department of Homeland Security is a cabinet department of the United States federal government, created in response to the September 11 attacks, and with the primary responsibilities of protecting the territory of the United States and protectorates from and responding to... |
$43.2 billion (-0.9%) |
| Department of Energy United States Department of Energy The United States Department of Energy is a Cabinet-level department of the United States government concerned with the United States' policies regarding energy and safety in handling nuclear material... |
$29.6 billion (+4.2%) |
| Department of Justice United States Department of Justice The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated... |
$28.2 billion (-7.2%) |
| Department of Agriculture United States Department of Agriculture The United States Department of Agriculture is the United States federal executive department responsible for developing and executing U.S. federal government policy on farming, agriculture, and food... |
$23.8 billion (-7.1%) |
| National Aeronautics and Space Administration | $18.2 billion (-6.7%) |
| Department of Transportation United States Department of Transportation The United States Department of Transportation is a federal Cabinet department of the United States government concerned with transportation. It was established by an act of Congress on October 15, 1966, and began operation on April 1, 1967... |
$13.4 billion (-4.1%) |
| Department of the Treasury United States Department of the Treasury The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue... |
$14.0 billion (+0.8%) |
| Department of the Interior United States Department of the Interior The United States Department of the Interior is the United States federal executive department of the U.S. government responsible for the management and conservation of most federal land and natural resources, and the administration of programs relating to Native Americans, Alaska Natives, Native... |
$12.1 billion (+0.3%) |
| Department of Labor United States Department of Labor The United States Department of Labor is a Cabinet department of the United States government responsible for occupational safety, wage and hour standards, unemployment insurance benefits, re-employment services, and some economic statistics. Many U.S. states also have such departments. The... |
$12.8 billion (-8.3%) |
| Department of Commerce United States Department of Commerce The United States Department of Commerce is the Cabinet department of the United States government concerned with promoting economic growth. It was originally created as the United States Department of Commerce and Labor on February 14, 1903... |
$8.8 billion (-2.3%) |
| Army Corps of Engineers United States Army Corps of Engineers The United States Army Corps of Engineers is a federal agency and a major Army command made up of some 38,000 civilian and military personnel, making it the world's largest public engineering, design and construction management agency... |
$4.6 billion (-6.2%) |
| Environmental Protection Agency United States Environmental Protection Agency The U.S. Environmental Protection Agency is an agency of the federal government of the United States charged with protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress... |
$9.0 billion (-10.3%) |
| National Science Foundation National Science Foundation The National Science Foundation is a United States government agency that supports fundamental research and education in all the non-medical fields of science and engineering. Its medical counterpart is the National Institutes of Health... |
$7.8 billion (+4.6%) |
| Small Business Administration Small Business Administration The Small Business Administration is a United States government agency that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses... |
$1.0 billion (-1.0%) |
| Corporation for National and Community Service Corporation For National and Community Service The Corporation for National and Community Service is a federal agency that engages more than five million Americans in service through Senior Corps, AmeriCorps, and Learn and Serve America, and other national service initiatives... |
$1.3 billion (-11.1%) |
| Disaster costs | $6.0 billion (+200%) |
| Other On-budget Discretionary Spending | $44.9 billion (-3.9%) |
External links
- Status of Appropriations Legislation for Fiscal Year 2012 from the Library of Congress
- The Congressional Progressive Caucus' “People’s Budget"
- Official Government Printing Office 2012 Budget page
- Official White House Budget page
- Official House of Representatives Committee on the Budget FY2012 page
- A visualization of Obama's 2012 budget proposal from the New York Times
- 2012 Federal Budget Treemap by “The Hive GroupThe Hive GroupThe Hive Group is a software company that applies visualization technology in operational intelligence , business intelligence , and complex event processing contexts...
” - Congressional Budget Office
- Understanding the Federal Budget