MeeMie
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Obama's Trillion Dollar Deficit Budget
Obama forecast the biggest U.S. deficit since World War Two in a budget that urges a costly overhaul of the healthcare system and would spend trillions more on other liberal agendas.
An eye-popping $1.75 trillion deficit for the 2009 fiscal year is projected to spread across a ten year period.
That is equal to 12.3 percent of U.S. gross domestic product -- double the previous post-war record of 6 percent in 1983, when Ronald Reagan was president, -- and not since the highest level the deficit totaled 21.5 percent of GDP in 1945, at the end of World War II.
The cost of the stimulus bill and the increased bailouts would push the deficit for this year alone to $1.75 trillion, nearly four times last year's record $455 billion and over 12 percent of the economy.
Obama's budget proposes a $3.55 trillion spending plan for the 2010 fiscal year.
Spending by the Obama administration would increase to meet key liberal objectives.
• This budget sets aside $250 billion for more money in the current 2009 fiscal year to prop up U.S. banking system - over and above the $700 Billion TARP I and already proposed $750 Billion TARP II.
• This budget includes a $634 billion reserve fund to pay for Obama's proposed healthcare reforms.
The fund would represent little more than half the money projected to be needed to extend health insurance in his proposal.
The $634 billion down payment on expanding health care coverage is expected to come from a $318 billion increase over 10 years in taxes. The other half of the money, $318 billion would come from curtailing payments to hospitals and insurance companies under Medicare and drug payments under Medicaid. Some of the Medicare savings would come from scaling back payments to private insurance plans that serve older Americans, which many analysts believe to be inflated. Other proposals include charging upper-income beneficiaries a higher premium for Medicare's prescription drug coverage. The Medicare plan is sure to incite battles with doctors, hospitals, health insurance companies and drug manufacturers.
• This budget only includes $130 billion for military operations for 2010,
and supplements the existing budget for military expenses up to $140 billion for 2009.
Washington spent almost $190 billion on the wars in Iraq and Afghanistan in 2008.
** Please Note: (to put things in to perspective)
Compare the military figures with the $410 billion interim government operation bill just passed by Congress.
• This budget proposal lays out spending cuts in farm subsidies and other areas to meet the deficit-reduction goal. Obama's hopes for finding big savings in programs like farm subsidies may prove very optimistic.
Obama's budget projects $2 trillion in deficit reduction over a decade—split between tax hikes and trimming a variety of government programs ranging from subsidies paid to farmers to eliminating ineffective government programs.
However, previous presidents have also optimistically sought to target wasteful government spending only to find the programs targeted had powerful supporters in Congress. Obama's promise to phase out direct payments to farming operations is sure to cause concerns among many rural farm states, especially in lieu of some of the earmarks included in the $410 Billion omnibus government interim operational budget.
• This budget creatively attempts to hypothetically defray actual expenses by billions with anticipated revenues from a greenhouse gas emissions trading system, one of Obama's key policy proposals to fight global warming.
The plan contains a contentious proposal to raise hundreds of billions of dollars by auctioning off permits to exceed carbon emissions caps, which Obama wants to impose on users of fossil fuels. Some of the anticipated revenues from the pollution permits would be used to cushion low-income Americans from the higher electricity bills they will face because of the stiffer pollution controls. Disastrous to energy costs for middle America!
• This budget allocates, to meet his pledge of tax cuts for the middle class, makes permanent the $13 dollar weekly tax cut due to start showing up in workers' paychecks in 2009, decreased to $8 dollars weekly starting in 2010. Obama's budget also extends the middle class tax cuts passed by the Bush administration.
In addition to sending Congress his $3.55 trillion budget plan for 2010, Obama proposed more immediate changes that would push spending to $3.94 trillion in the current year. That would result in a record deficits, reflecting the massive spending being undertaken by this administration.
The $1.75 trillion budget deficit forecast for this year optimistically reflects new spending proposals under the $787 billion economic stimulus package the Democratic president signed earlier this month, followed by his Mortgage, Car Company and $750 billion Banking bailout (doubling the $350 billion bank bailout allocated by TARP I). Congress added to the spending spree with their $410 billion interim government operation bill.
HOW WILL IT BE PAID FOR?
Almost $1 Trillion in New Taxes
This budget will boost taxes on the wealthy, curtail Medicare, lay the groundwork for universal health care and leave a string of deficits dwarfing any in the nation's history.
President Obama's budget proposes $989 billion in new taxes over the course of the next 10 years, starting fiscal year 2011, most of which are tax increases on individuals.
Raising the marginal rate on household incomes from 35 percent to 39.6 percent.
Reduce the rate of itemized deductions for mortgage interest, charitable contributions, local taxes and other expenses to 28 cents on the dollar.
1) On individual taxpayers making more than $250,000.
$338 billion - Bush tax cuts expire
$179 billlion - eliminate itemized deduction
$118 billion - capital gains tax hike
2) On Businesses:
$17 billion - Reinstate Superfund taxes
$24 billion - tax carried-interest as income
$5 billion - codify "economic substance doctrine"
$61 billion - repeal LIFO
$210 billion - international enforcement, reform deferral, other tax reform
$4 billion - information reporting for rental payments
$5.3 billion - excise tax on Gulf of Mexico oil and gas
$3.4 billion - repeal expensing of tangible drilling costs
$62 million - repeal deduction for tertiary injectants
$49 million - repeal passive loss exception for working interests in oil and natural gas properties
$13 billion - repeal manufacturing tax deduction for oil and natural gas companies
$1 billion - increase to 7 years geological and geophysical amortization period for independent producers
$882 million - eliminate advanced earned income tax credit
What trickle down effect do you think that raising taxes on anyone will have on new and expanding businesses?
One doesn't need a crystal ball, just a look back in history, to realize the drastic effect this budget will place on every aspect of every Americans life, from higher energy costs, unemployment and cost of basic necessities.
Obama spoke of "hard choices that lie ahead." He called his budget "an honest accounting of where we are and where we intend to go."
But Republicans contended Obama was avoiding hard choices in favor of exploding the deficit with outrageous spending and raising taxes.
"The American people deserve a budget that puts fiscal discipline and jobs first. The budget offered by the Obama administration fails on both counts," said Rep. Mike Pence, the chairman of the House Republican Conference.
"Everyone agrees that all Americans deserve access to affordable health care, but is increasing taxes during an economic recession, especially on small businesses, the right way to accomplish that goal?" asked House Minority Leader John Boehner, R-Ohio.
Republicans assailed the budget for the tax increases bound to worsen the economy, and even some Democrats worried that Obama was not adressing the deficit spending.
Obama forecast the biggest U.S. deficit since World War Two in a budget that urges a costly overhaul of the healthcare system and would spend trillions more on other liberal agendas.
An eye-popping $1.75 trillion deficit for the 2009 fiscal year is projected to spread across a ten year period.
That is equal to 12.3 percent of U.S. gross domestic product -- double the previous post-war record of 6 percent in 1983, when Ronald Reagan was president, -- and not since the highest level the deficit totaled 21.5 percent of GDP in 1945, at the end of World War II.
The cost of the stimulus bill and the increased bailouts would push the deficit for this year alone to $1.75 trillion, nearly four times last year's record $455 billion and over 12 percent of the economy.
Obama's budget proposes a $3.55 trillion spending plan for the 2010 fiscal year.
Spending by the Obama administration would increase to meet key liberal objectives.
• This budget sets aside $250 billion for more money in the current 2009 fiscal year to prop up U.S. banking system - over and above the $700 Billion TARP I and already proposed $750 Billion TARP II.
• This budget includes a $634 billion reserve fund to pay for Obama's proposed healthcare reforms.
The fund would represent little more than half the money projected to be needed to extend health insurance in his proposal.
The $634 billion down payment on expanding health care coverage is expected to come from a $318 billion increase over 10 years in taxes. The other half of the money, $318 billion would come from curtailing payments to hospitals and insurance companies under Medicare and drug payments under Medicaid. Some of the Medicare savings would come from scaling back payments to private insurance plans that serve older Americans, which many analysts believe to be inflated. Other proposals include charging upper-income beneficiaries a higher premium for Medicare's prescription drug coverage. The Medicare plan is sure to incite battles with doctors, hospitals, health insurance companies and drug manufacturers.
• This budget only includes $130 billion for military operations for 2010,
and supplements the existing budget for military expenses up to $140 billion for 2009.
Washington spent almost $190 billion on the wars in Iraq and Afghanistan in 2008.
** Please Note: (to put things in to perspective)
Compare the military figures with the $410 billion interim government operation bill just passed by Congress.
• This budget proposal lays out spending cuts in farm subsidies and other areas to meet the deficit-reduction goal. Obama's hopes for finding big savings in programs like farm subsidies may prove very optimistic.
Obama's budget projects $2 trillion in deficit reduction over a decade—split between tax hikes and trimming a variety of government programs ranging from subsidies paid to farmers to eliminating ineffective government programs.
However, previous presidents have also optimistically sought to target wasteful government spending only to find the programs targeted had powerful supporters in Congress. Obama's promise to phase out direct payments to farming operations is sure to cause concerns among many rural farm states, especially in lieu of some of the earmarks included in the $410 Billion omnibus government interim operational budget.
• This budget creatively attempts to hypothetically defray actual expenses by billions with anticipated revenues from a greenhouse gas emissions trading system, one of Obama's key policy proposals to fight global warming.
The plan contains a contentious proposal to raise hundreds of billions of dollars by auctioning off permits to exceed carbon emissions caps, which Obama wants to impose on users of fossil fuels. Some of the anticipated revenues from the pollution permits would be used to cushion low-income Americans from the higher electricity bills they will face because of the stiffer pollution controls. Disastrous to energy costs for middle America!
• This budget allocates, to meet his pledge of tax cuts for the middle class, makes permanent the $13 dollar weekly tax cut due to start showing up in workers' paychecks in 2009, decreased to $8 dollars weekly starting in 2010. Obama's budget also extends the middle class tax cuts passed by the Bush administration.
In addition to sending Congress his $3.55 trillion budget plan for 2010, Obama proposed more immediate changes that would push spending to $3.94 trillion in the current year. That would result in a record deficits, reflecting the massive spending being undertaken by this administration.
The $1.75 trillion budget deficit forecast for this year optimistically reflects new spending proposals under the $787 billion economic stimulus package the Democratic president signed earlier this month, followed by his Mortgage, Car Company and $750 billion Banking bailout (doubling the $350 billion bank bailout allocated by TARP I). Congress added to the spending spree with their $410 billion interim government operation bill.
HOW WILL IT BE PAID FOR?
Almost $1 Trillion in New Taxes
This budget will boost taxes on the wealthy, curtail Medicare, lay the groundwork for universal health care and leave a string of deficits dwarfing any in the nation's history.
President Obama's budget proposes $989 billion in new taxes over the course of the next 10 years, starting fiscal year 2011, most of which are tax increases on individuals.
Raising the marginal rate on household incomes from 35 percent to 39.6 percent.
Reduce the rate of itemized deductions for mortgage interest, charitable contributions, local taxes and other expenses to 28 cents on the dollar.
1) On individual taxpayers making more than $250,000.
$338 billion - Bush tax cuts expire
$179 billlion - eliminate itemized deduction
$118 billion - capital gains tax hike
2) On Businesses:
$17 billion - Reinstate Superfund taxes
$24 billion - tax carried-interest as income
$5 billion - codify "economic substance doctrine"
$61 billion - repeal LIFO
$210 billion - international enforcement, reform deferral, other tax reform
$4 billion - information reporting for rental payments
$5.3 billion - excise tax on Gulf of Mexico oil and gas
$3.4 billion - repeal expensing of tangible drilling costs
$62 million - repeal deduction for tertiary injectants
$49 million - repeal passive loss exception for working interests in oil and natural gas properties
$13 billion - repeal manufacturing tax deduction for oil and natural gas companies
$1 billion - increase to 7 years geological and geophysical amortization period for independent producers
$882 million - eliminate advanced earned income tax credit
What trickle down effect do you think that raising taxes on anyone will have on new and expanding businesses?
One doesn't need a crystal ball, just a look back in history, to realize the drastic effect this budget will place on every aspect of every Americans life, from higher energy costs, unemployment and cost of basic necessities.
Obama spoke of "hard choices that lie ahead." He called his budget "an honest accounting of where we are and where we intend to go."
But Republicans contended Obama was avoiding hard choices in favor of exploding the deficit with outrageous spending and raising taxes.
"The American people deserve a budget that puts fiscal discipline and jobs first. The budget offered by the Obama administration fails on both counts," said Rep. Mike Pence, the chairman of the House Republican Conference.
"Everyone agrees that all Americans deserve access to affordable health care, but is increasing taxes during an economic recession, especially on small businesses, the right way to accomplish that goal?" asked House Minority Leader John Boehner, R-Ohio.
Republicans assailed the budget for the tax increases bound to worsen the economy, and even some Democrats worried that Obama was not adressing the deficit spending.
