Good grief do we have a drunken sailor as president? This man is going to give us unimaginable deficits, continuing double digit unemployment, soaring interest rates, and most likely (and too me worrisome) inflation around the corner. It seems that his plan is to leave such a socialistic impact on this country that his successors will be unable to unravel it – all the while creating new generations of dependent Americans on the government largesse. We need a Republican congress to at least try to put the breaks on the galloping Socialist.
hat tip Ace
by Jonathan Weisman
President Barack Obama proposed a $3.8 trillion budget for fiscal 2011 that will add fuel to the debate over the size and scope of government. The plan includes big increases in personal and business taxes, modest spending cuts and increased outlays for education, defense and jobs initiatives.
In the days leading up to Monday’s release, the Obama administration has focused on proposals to cap so-called discretionary spending, roughly 17% of the total budget, as part of a plan to narrow the record $1.6 trillion gap between proposed budget outlays and tax receipts. But the budget plan calls for nearly $1 trillion in tax increases on upper-income families—largely by allowing Bush tax cuts to expire. Banks, bankers and multinational corporations would face new fees and levies. And oil companies would lose $39 billion in tax breaks.
Overall, Mr. Obama’s budget plan would shrink the current deficit to $727 billion, or 4.2% of the gross domestic product, by 2013. But if annual deficits shrink, the total federal debt will keep growing. In all, the president’s budget would add $8.5 trillion to the federal debt through 2020, pushing the debt as a percentage of GDP to 77% from 53%.
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To hold the government to 77%, the president must rely on politically painful choices, including cuts to some domestic programs and large tax increases as the tax cuts of George W. Bush expire at year end. In that sense, the president is showing voters the choices they face to maintain the government they have.
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The two top income-tax brackets would rise to 36% and 39.6% from 33% and 35%. For families earning at least $250,000, capital-gains and dividend tax rates would rise to 20% from 15%. All totaled, upper-income families would face $969 billion in higher taxes between 2011 and 2020. Oil and gas companies would face $37 billion more in taxes over that stretch.
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