The US deficit, down from the $1 trillion-plus levels of Obama's first four years and a $483 billion gap in fiscal 2014, will stay largely flat in 2016, then begin to march upward due to rising costs for debt and caring for fast-retiring Baby Boomers. Estimates by the Congressional Budget Office kick off what promises to be a contentious budget debate in Washington.

"We know what a truly balanced approach to our fiscal challenges looks like," Press Secretary Jay Carney said. "The president has put forward a very specific plan that will be what he brings to the table when he sits down with congressional leaders." Obama's previous proposal called for raising $1.6 trillion in new taxes on the wealthy by allowing tax rates to increase, imposing a new special tax on millionaires and limiting deductions for the wealthy. He also proposed $340 billion in health-care and entitlement savings, continuing $1.1 trillion in spending cuts already passed into law and generating another $1 trillion in savings through the end of the wars in Iraq and Afghanistan.

The US has abundant natural resources, a well-developed infrastructure, and high productivity. The United States of America is the world's largest national economy, representing 22.4% of nominal global GDP and 16.6% of global GDP (PPP). The United States' GDP was estimated to be $17.555 trillion as of Q3 2014.