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The president will also propose a six-year, $476 billion highway and surface transportation bill and $360 billion from curbs to federal health care programs like Medicare and Medicaid. There's $278 billion more in savings from non-health benefits programs like farm subsidies and federal civilian worker pensions. There's also an immediate $350 billion for job-creating measures, about $100 billion less than presented in Obama's September jobs plan because the administration is giving up on increasing the 2 percentage point payroll tax cut to 3.1 percent and giving it to businesses. Ideas like school modernization and road projects haven't gained traction in Congress, however. The White House warned earlier this week that its economic assumptions -- predictions of the unemployment rate averaging 8.9 percent this year
-- now look too pessimistic. They were made in mid-November, before a recent spate of positive news about the economy. If the economy performs better than officially projected, it'll mean a better fiscal performance for the government since greater growth means increased tax revenues. "The forecast of the unemployment rate that will accompany the budget should be considered stale and out of date," White House economist Alan Krueger said Thursday.
[Associated
Press;
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