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| President Barack Obama's new $4 trillion budget plan is distributed by the Senate Budget Committee as it arrives on Capitol Hill in Washington, early Monday, Feb. 02, 2015. The fiscal blueprint for the budget year that begins Oct. 1, seeks to raise taxes on wealthier Americans and corporations and use the extra income to lift the fortunes of families who have felt squeezed during tough economic times. Republicans, who now hold the power in Congress, are accusing the president of seeking to revert to tax-and-spend policies that will harm the economy while failing to do anything about soaring spending on government benefit programs. (AP Photo/J. Scott Applewhite) |
WASHINGTON — Sure, $4 trillion sounds like a lot. But it goes fast when your budget stretches from aging highways to medical care to space travel and more.
Here's an agency-by-agency look at how President Barack Obama would spend Americans' money in the 2016 budget year beginning Oct. 1:
HEALTH AND HUMAN SERVICES
Up or down? Up 4.3 percent
What's new? Medicare could negotiate prices for cutting-edge drugs.
Highlights:
— The president's proposed health care budget asks Congress to authorize Medicare to negotiate what it pays for high-cost prescription drugs and for biologics, including advanced medications for diseases such as rheumatoid arthritis. Currently, private insurers bargain on behalf of Medicare beneficiaries. Drug makers have beaten back prior proposals to give Medicare direct pricing power. But the introduction of a $1,000-a-pill hepatitis-C drug last year may have shifted the debate.
— Tobacco taxes would nearly double, to extend health insurance for low-income children. The federal cigarette tax would rise from just under $1.01 per pack to about $1.95 per pack. Taxes on other tobacco products also would go up. That would provide financing to pay for the Children's Health Insurance Program through 2019. The federal-state program serves about 8 million children, and funding technically expires Sept. 30. The tobacco tax hike would take effect in 2016.
— Starting in 2019, the proposal increases Medicare premiums for high-income beneficiaries and adds charges for new enrollees. The charges for new enrollees include a home health copayment, changes to the Part B deductible, and a premium surcharge for seniors who've also purchased a kind of supplemental insurance whose generous benefits are seen as encouraging overuse of Medicare services.
— There's full funding for ongoing implementation of Obama's health care law.
—The plan would end the budget sequester's 2 percent cut in Medicare payments to service providers and repeal another budget formula that otherwise will result in sharply lower payments for doctors. But what one hand gives, the other hand takes away. The budget also calls for Medicare cuts to hospitals, insurers, drug companies and other service providers.
The numbers:
Total spending: $1.1 trillion, including about $1 trillion on benefit programs including Medicare and Medicaid, already required by law.
Spending that needs Congress' annual approval: $80 billion.
NASA
Up or down? Up 2.9 percent
What's new? Not much. Just more money for planned missions.
Highlights:
—The exploration budget — which includes NASA's plans to grab either an asteroid or a chunk of an asteroid and haul it closer to Earth for exploration by astronauts — gets a slight bump in funding. But the details within the overall exploration proposal are key. The Obama plan would put more money into cutting-edge non-rocket space technology; give a 54 percent spending jump to money sent to private firms to develop ships to taxi astronauts to the International Space Station; and cut by nearly 12 percent spending to build the next government big rocket and capsule to carry astronauts. Congress in the past has cut the president's proposed spending on the private firms and technology and boosted the spending on the government big rocket and capsule.
—The president's 0.8 percent proposed increase in NASA science spending is his first proposed jump in that category in four years. It's also the first proposed jump in years in exploring other planets. It includes extra money for a 2020 unmanned Martian rover and continued funding for an eventual robotic mission to Jupiter's moon Europa. But the biggest extra science spending goes to study Earth.
— Obama's budget would cut aeronautics research 12 percent from current spending and slash NASA's educational spending by 25 percent. It also slightly trims the annual spending to build the over-budget multi-billion dollar James Webb Space Telescope, which will eventually replace the Hubble Space Telescope and is scheduled to launch in 2018.
The numbers:
Total spending: $18.5 billion
Spending that needs Congress' annual approval: $18.5 billion
TRANSPORTATION
Up or down? Up 31 percent
What's new? A plan to tackle an estimated $2 trillion in deferred maintenance for the nation's aging infrastructure by boosting highway and transit spending to $478 billion over six years.
Highlights:
— The six-year highway and transit plan would get a one-time $238 billion infusion from the general treasury. Some of the money would be offset by taxing the profits of U.S. companies that haven't been paying taxes on income made overseas. That infusion comes on top of the $35 billion a year that normally comes from gasoline and diesel taxes and other transportation fees.
— The proposal also includes tax incentives to encourage private investment in infrastructure, and an infrastructure investment bank to help finance major transportation projects.
— The new infrastructure investment would be front-loaded. The budget proposes to spend the money over six years and pay for the programs over 10 years.
— The proposal also includes a new Interagency Infrastructure Permitting Improvement Center to coordinate efforts across nearly 20 federal agencies and bureaus to speed up the permitting process. For example, the Coast Guard, Corps of Engineers and Transportation Department are trying to synchronize their reviews of projects such as bridges that cross navigation channels.
The numbers:
Total spending: $94.5 billion, including more than $80 billion already required by law, mostly for highway and transit aid to states and improvement grants to airports.
Spending that needs Congress' annual approval: $14.3 billion.
Associated Press writers Ricardo Alonso-Zaldivar, Seth Borenstein, Joan Lowy and Connie Cass contributed to this report.
Google Chairman Eric Schmidt: "The Internet Will Disappear"
Excerpt from hollywoodreporter.com
Google executive chairman Eric Schmidt on Thursday predicted the end of the Internet as we know it.
At the end of a panel at the World Economic Forum in Davos, Switzerland, where his comments were webcast, he was asked for his prediction on the future of the web. “I will answer very simply that the Internet will disappear,” Schmidt said.
“There will be so many IP addresses…so many devices, sensors, things that you are wearing, things that you are interacting with that you won’t even sense it,” he explained. “It will be part of your presence all the time. Imagine you walk into a room, and the room is dynamic. And with your permission and all of that, you are interacting with the things going on in the room.”
Concluded Schmidt: “A highly personalized, highly interactive and very, very interesting world emerges.”
The panel, entitled The Future of the Digital Economy, also featured Facebook COO Sheryl Sandberg and others.
Earlier in the debate, Schmidt discussed the issue of market dominance. The European Union has been looking at Google’s search market dominance in a long-running antitrust case, and the European parliament late last year even called for a breakup.
Asked about his recent trip to North Korea, Schmidt said the country has many Internet connections through data phones, but there is no roaming and web usage is “heavily supervised.” Schmidt said “it’s very much surveillance of use,” which he said was not good for the country and others.
Sandberg and Schmidt lauded the Internet as an important way to give more people in the world a voice. Currently, only 40 percent of people have Internet access, the Facebook COO said, adding that any growth in reach helps extend people’s voice and increase economic opportunity. “I’m a huge optimist,” she said about her outlook for the industry. “Imagine what we can do” once the world gets to 50 percent, 60 percent and more in terms of Internet penetration.
Schmidt similarly said that broadband can address governance issues, information needs, personal issues, women empowerment needs and education issues. “The Internet is the greatest empowerment of citizens … in many years,” he said. “Suddenly citizens have a voice, they can be heard.”
During another technology panel at the World Economic Forum on Thursday, Yahoo CEO Marissa Mayer, Liberty Global CEO Mike Fries and others answered questions on the need to regulate privacy standards on the Internet and for tech companies following the Snowden case, the Sony hack and the like.
Mayer said that the personalized Internet “is a better Internet,” emphasizing: “We don’t sell your personal data … We don’t transfer your personal data to third parties.” She said users own their data and need to have control, adding that people give up data to the government for tax assessment, social services and other purposes.
Both executives said transparency was important to make sure users know privacy standards and the like.
Gunther Oettinger, a conservative German politician serving as the European Union’s commissioner for digital economy and society, said on the panel that “we need a convincing global understanding, we need a UN agency for data protection and security.” Asked what form that “understanding” should have, he said he was looking for “clear, pragmatic, market-based regulation.” Explained Oettinger: “It’s a public-private partnership.”
Fries said such a solution was likely not to happen in the near term, given the size of the EU. “I think it is going to take several years,” he said, adding that some countries’ parliaments would likely take a stab at it.
But he warned that a joint solution would make more sense. “We don’t want Germany to have its own Internet,” Fries said. “Some countries may build their own Internets” and “balkanize” the web, he warned.
Mayer said on the issue of regulation: “I like Tim’s idea better of the beneficent marketplace.” She spoke of fellow panelist and computer specialist Tim Berners-Lee, known as the inventor of the World Wide Web.
Asked how Yahoo stores and handles client records, she said the online giant “changed the way we store and communicate data” after Snowden and also changed encryptions between data centers. And the company protects users through encryption methods, she added. Mayer said that trust and confidence of Yahoo users has rebounded since.
Mayer was also asked what happens if a government asks for a user’s data, a question that has new significance after the recent terrorist attacks in Paris, which have led some to call for increased surveillance powers of the Internet for governments. Mayer said Yahoo always assesses if such a request is reasonable. “We have a very good track record for standing up to what’s not reasonable,” she said.