Today, President Barack Obama requested Congress to ratify the new taxes on the wealthy, approve short terms spending measures and restructure the tax code as a part of his budget plan for this election year. His main motive is to increase job growth and help the middle class.
Congressional Republicans and GOP presidential candidates quickly dismissed Mr. Obama’s $3.8 trillion budget for the fiscal year starting Oct. 1 as a political document that fails to seriously tackle the nation’s growing debt.
The budget emphasizes on the White House’s theory that it can convince the people of the United States this November that mass spending in the short terms is going to lead to a push in the economy prior to taken measures to shrink the federal deficit in the long run.
It seems like they just want to keep milking the American people for every penny they have. Each year the taxes get higher and moved around to a new place.
It looks like the budget projects the deficit will surpass $1 trillion in 2012 for the fourth year in a row. This means that Pres. Obama couldn’t keep his promise to cut the deficit in half by the end of his first term. What a shocker..
Mr. Obama proposed generating $1.7 trillion in new revenue over 10 years (even though his term is only 4) largely by ending Bush-era tax cuts for families who earn more than $250,000. Thinking this will restore the estate tax to its 2009 level and limit subsidies for oil and gas companies.
He also proposed raising the tax rate on households making more than $250,000 a year by paying on dividends. This would be anywhere from 15% to as much as 39.6%. The White House said the measure would generate $206 billion in revenue over 10 years.
But the bad boy tax of them all is going to be known as the Buffet Rule. Obama wants to eventually replace the AMT with a long-term plan named after billionaire Investor Warren Buffet. This so called new rule will require those who earn more than $1 million to pay a tax rate of at least 30% and prevent them from claiming deductions to push their tax rates down.
However on the bright side, Congressional Republicans did criticize Pres. Obama for offering no new insights to reform the Medicare, Medicaid or Social Security, which are unfortunately expanding rapidly as Americans age and health costs climb every year. Seems like were falling so behind that playing catch up isn’t even going to be possible.
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