President Obama’s 2012 budget, set for release on Monday, projects a $1.65 trillion deficit this year—the largest on record. Obama is proposing as part of the new budget $1.1 trillion in deficit-reduction measures over the next 10 years, with two-thirds of those savings coming from spending cuts and one-third from tax increases. However, he is also calling for increased investment in education and infrastructure, with House Republicans are likely to oppose. Before you buy Republicans’ complaints about the deficit, however, keep this in mind: The main reason this year’s deficit is larger than expected is the deal to extend the Bush tax cuts, which the GOP pushed for. President Obama's deficit-reduction proposals include letting those tax cuts expire in 2012.