Obama Floats $4 Trillion Budget To Congress

President Obama releases a $4 trillion budget today that calls for middle class tax cuts and major investment in infrastructure. The plan would rely on taxing rich Americans by closing tax loopholes on capital gains and trust funds.

Republicans are not on board. Rep. Paul Ryan of Wisconsin said Obama was exploiting "envy economics." The president's proposal included a child care tax credit, a $500 credit for "second-earners" in a household and more money for a preschool development program.

Clarification:  Our guest Marilyn Geewax mentioned in this interview that a large wave of retirements would worsen the nation’s fiscal outlook. She meant to say that as baby boomers retire, they stop collecting paychecks on which they pay income taxes. That can result in reduced federal tax revenues. But some retirees, if they have substantial incomes from other sources such as interest and dividends, may pay federal income taxes on Social Security benefits.