Image source: Wikimedia Commons 

BY ZACH TOOMBS

President Obama won’t officially release his election-year budget until Monday. But his administration is providing a preview — one that shows cuts in military spending reinvested in domestic projects. CNN reports.

“The plan predicts a $901 billion deficit next year and calls for investments in infrastructure and education. It also includes cuts in military spending and $1.5 trillion in tax hikes.”

The plan puts special emphasis on a $476 billion transportation bill — largely financed by savings from troop withdrawals in Iraq and Afghanistan and the closing of several tax loopholes. The Los Angeles Times reports:

“The proposal would support plans to put 1 million electric vehicles on the road by 2015 and double the share of electricity from clean energy sources by 2035. Elimination of 12 tax breaks to oil, gas and coal companies would raise $41 billion over the next decade, according to administration projections.”

Following up on his pledge last month to create a leaner, less expensive military, President Obama would propose almost half a trillion dollars in cuts to defense spending. Voice of America reports:

“The administration says savings from ending the wars in Iraq and Afghanistan will yield about $850 billion in savings in the coming decade. The president says that money will be used to pay for new roads and railways, and to reduce the deficit.”

The projected $1.3 trillion deficit in 2012 and the $901 billion deficit in 2013 present higher-than-expected figures. And The Washington Post reports those numbers rely on the expiration of the Bush tax cuts and the implementation of the so-called Buffett rule.

“Obama ... has called for changes to the tax code that would require households earning more than $1 million a year to pay at least 30 percent of their income in federal taxes, but senior administration officials said Friday that the blueprint will provide no additional details on how such a levy would be structured.”

As The Wall Street Journal reports, the proposed budget consists of many plans already put forward by Mr. Obama — plans the GOP has rejected.

“He’s saying, ‘I’m not changing my positions on this,’ and he knows that they’re not changing theirs any time soon. So, he’s putting out that — he’s putting out his plan and saying, ‘this is where I stand.’

POLITICO reports, before the budget comes before Congress, lawmakers will likely square off on one facet of the Obama plan — the payroll tax cut issue. That cut was extended two months ago, but will be up for debate again by the end of the month.