Obama's Budget Proposal Would Push Deficit to $1.75T
By William Branigin and Lori Montgomery
Washington Post Staff Writers
Thursday, February 26, 2009
President Obama today unveiled a proposed $3.55 trillion budget for the coming fiscal year that he said discards "dishonest" accounting practices of the past and makes "a historic commitment to comprehensive health care reform."
The plan would effectively raise taxes on the wealthiest Americans and trim Medicare costs to help pay for what the administration calls a $634 billion "down payment" on a universal health care program. It would also extend tax cuts for middle-class Americans while closing corporate tax loopholes and reducing some agricultural subsidies, officials said.
The budget proposes significant tax increases for businesses and wealthy families worth nearly $2 trillion over the next 10 years. Families making more than $250,000 a year, for example, would see taxes on income and investment earnings rise while the amounts allowed for itemized deductions would fall. At the same time, a refundable income tax credit for 95 percent of American workers would be made permanent under the budget proposal. The "Making Work Pay" provision of the economic stimulus package enacted last week provides a tax credit of up to $400 for individuals and $800 for couples in 2009 and 2010.
In addition to the budget for fiscal 2010, the administration also proposes a $3.94 trillion budget for the 2009 fiscal year that ends Sept. 30. The figure includes nearly $250 billion in additional funds that could be used to bail out struggling banks, as well as $1.3 trillion for "discretionary programs" such as government operations and overseas wars. Congress has not yet passed a 2009 budget, but has funded the operations of the government with continuing resolutions through March 6. A $410 billion omnibus spending bill was approved by the House this week to fund major government agencies through the remainder of the fiscal year.
(More here.)
Washington Post Staff Writers
Thursday, February 26, 2009
President Obama today unveiled a proposed $3.55 trillion budget for the coming fiscal year that he said discards "dishonest" accounting practices of the past and makes "a historic commitment to comprehensive health care reform."
The plan would effectively raise taxes on the wealthiest Americans and trim Medicare costs to help pay for what the administration calls a $634 billion "down payment" on a universal health care program. It would also extend tax cuts for middle-class Americans while closing corporate tax loopholes and reducing some agricultural subsidies, officials said.
The budget proposes significant tax increases for businesses and wealthy families worth nearly $2 trillion over the next 10 years. Families making more than $250,000 a year, for example, would see taxes on income and investment earnings rise while the amounts allowed for itemized deductions would fall. At the same time, a refundable income tax credit for 95 percent of American workers would be made permanent under the budget proposal. The "Making Work Pay" provision of the economic stimulus package enacted last week provides a tax credit of up to $400 for individuals and $800 for couples in 2009 and 2010.
In addition to the budget for fiscal 2010, the administration also proposes a $3.94 trillion budget for the 2009 fiscal year that ends Sept. 30. The figure includes nearly $250 billion in additional funds that could be used to bail out struggling banks, as well as $1.3 trillion for "discretionary programs" such as government operations and overseas wars. Congress has not yet passed a 2009 budget, but has funded the operations of the government with continuing resolutions through March 6. A $410 billion omnibus spending bill was approved by the House this week to fund major government agencies through the remainder of the fiscal year.
(More here.)
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