U.S. deficit, spending at record levels in new budget
#1 Feb 2, 2010
One third of the budget is in deficit spending? The President may be saying the right words, but his actions belie his statements. And all of that with $1 trillion in increased taxes? Unbelievable.
#2 Feb 2, 2010
The article stated "Just three years ago, the deficit stood at 1.2 percent of GDP. This year, it's 10.6 percent." All I can say is what happen three year ago? The answer Democrats took control of congress. Even the last year of G.W. the deficit to GDP was 3.24.
It also states unemployment at the end of the year would be 9.8, I hope this doesn't come from the same people who said passing the stimulus bill would keep unemployment below 8%.
#3 Feb 2, 2010
Backdoor taxes to hit middle class
By Terri Cullen - Monday, February 1, 2010, 4:09 pm ET
NEW YORK ( Reuters.com )-- The Obama administration's plan to cut more than $1 trillion from the deficit over the next decade relies heavily on so-called backdoor tax increases that will result in a bigger tax bill for middle-class families.
In the 2010 budget tabled by President Barack Obama on Monday, the White House wants to let billions of dollars in tax breaks expire by the end of the year -- effectively a tax hike by stealth.
While the administration is focusing its proposal on eliminating tax breaks for individuals who earn $250,000 a year or more, middle-class families will face a slew of these backdoor increases.
The targeted tax provisions were enacted under the Bush administration's Economic Growth and Tax Relief Reconciliation Act of 2001. Among other things, the law lowered individual tax rates, slashed taxes on capital gains and dividends, and steadily scaled back the estate tax to zero in 2010.
If the provisions are allowed to expire on December 31, the top-tier personal income tax rate will rise to 39.6 percent from 35 percent. But lower-income families will pay more as well: the 25 percent tax bracket will revert back to 28 percent; the 28 percent bracket will increase to 31 percent; and the 33 percent bracket will increase to 36 percent. The special 10 percent bracket is eliminated.
Investors will pay more on their earnings next year as well, with the tax on dividends jumping to 39.6 percent from 15 percent and the capital-gains tax increasing to 20 percent from 15 percent. The estate tax is eliminated this year, but it will return in 2011 -- though there has been talk about reinstating the death tax sooner.
Millions of middle-class households already may be facing higher taxes in 2010 because Congress has failed to extend tax breaks that expired on January 1, most notably a "patch" that limited the impact of the alternative minimum tax. The AMT, initially designed to prevent the very rich from avoiding income taxes, was never indexed for inflation. Now the tax is affecting millions of middle-income households, but lawmakers have been reluctant to repeal it because it has become a key source of revenue.
Without annual legislation to renew the patch this year, the AMT could affect an estimated 25 million taxpayers with incomes as low as $33,750 (or $45,000 for joint filers). Even if the patch is extended to last year's levels, the tax will hit American families that can hardly be considered wealthy -- the AMT exemption for 2009 was $46,700 for singles and $70,950 for married couples filing jointly.
Middle - class families also will find fewer tax breaks available to them in 2010 if other popular tax provisions are allowed to expire. Among them:
* Taxpayers who itemize will lose the option to deduct state sales-tax payments instead of state and local income taxes;
* The $250 teacher tax credit for classroom supplies;
* The tax deduction for up to $4,000 of college tuition and expenses;
* Individuals who don't itemize will no longer be able to increase their standard deduction by up to $1,000 for property taxes paid;
* The first $2,400 of unemployment benefits are taxable, in 2009 that amount was tax-free.
#4 Feb 3, 2010
This president behaves like a punk. I have a better idea. Go away! Leave us alone. Surely there are countries where a socialist demagogue with Narcissistic Personality Disorder is desired. Perhaps he can get a job there. We deserve better than this boy child president with NO EXPERIENCE doing anything!
#5 Feb 3, 2010
I believe it is a mistake to use absolute numbers.
A $100,000 annual deficit would be financially devastating to me, but not to Bill Gates.
What is the deficit PER GDP?
#6 Feb 3, 2010
How does anyone run against Bush and the last eight years and then become much worse?
Since: May 08
#7 Feb 3, 2010
Not so much as a totally screwed media and its nimrod "analysts"
This from Reuters yesterday
The Feb 1 story headlined "Backdoor taxes to hit middle class" is wrong and has been withdrawn. The story said lower-income families will pay more under tax provisions scheduled to expire Dec 31. The Obama administration's budget calls for the extension of those tax provisions for households earning less than $250,000. There will be no substitute story.
#8 Feb 3, 2010
Don't worry. Count on your State Legislators.
They promise that they are way ahead of Obama and Pelosi.
Our State Legislature will drive California into insolvency before Obama's agenda can end any hope for other American children to have a shot at a good future.
#9 Feb 6, 2010
This story was PULLED by Reuters because it is factually incorrect.
The author of the story is no longer writing for Reuters, and Reuters felt the story was so flawed that they decided not to even rewrite it or republish it.
Fact: Only those income earners making more than $250,000/year will go back to paying the taxes that Bush saved them from paying for these many years. That's hardly a hardship, given the free ride that they have had.
BUT, importantly, anyone earning less will continue to receive the tax cut.
#10 Feb 6, 2010
House raises debt ceiling by $1.9T
WASHINGTON - The House on Thursday voted to allow the government to go $1.9 trillion deeper in debt - or about $6,000 more for every U.S. resident.
Already, the accumulated debt amounts to roughly $40,000 per person. And the debt is increasingly held by foreign nations such as China.
Passage of the bill would send it to President Barack Obama, who will sign it to avoid a first-ever, market-rattling default on U.S. obligations.
"I can't think of a more reckless or irresponsible act. Defaulting is not an option," said Rep. Jim McGovern, D-Mass. "If the United States defaults, investors will lose confidence that the U.S. will honor its debts in the future.
To help win passage, Democrats are also adopting - in a vote later Thursday afternoon - budget rules designed to curb a spiraling upward annual deficit - projected by Obama to hit a record $1.56 trillion for the budget year ending Sept. 30. The new rules would require future spending increases or tax cuts to be paid for with either cuts to other programs or equivalent tax increases.
If the rules are broken, the White House budget office would force automatic cuts to programs like Medicare, farm subsidies and unemployment insurance. Current rules lack such teeth and have commonly been waived over the past few years at a cost of almost $1 trillion.
"In place of real fiscal discipline, it offers a phony pay-as-you-go rule that is more loopholes and exceptions and does nothing to tackle our government's long-term structural deficit," said Rep. Pete Sessions, R-Texas.
Skeptics say lawmakers also will find ways around the new rules fairly easily. Congress, for example, can declare some spending an "emergency" - a likely scenario for votes later this month to extend jobless benefits for the long-term unemployed.
And, indeed, there already are exceptions to the new rules, such as for extending former President George W. Bush's middle-class tax cuts past their expiration a year from now. That would add $1.4 trillion to the federal debt over the next decade.
But some new White House initiatives, such as doubling the child care tax credit for families earning less than $85,000, also would have to live within the rules, as would continuing subsidies for laid-off workers to buy health insurance - unless lawmakers make another exception.
And the rules also mean that two years from now, lawmakers would have to raise taxes to pay for continuing lower tax rates on large inheritances and to protect millions of middle-class taxpayers from feeling the bite of the alternative minimum tax.
"We will have the will and we will have the discipline," promised House Majority Leader Steny Hoyer, D-Md.
The so-called pay-as-you-go rules have been a mantra with conservative "Blue Dog" Democrats in the House, who insisted they wouldn't vote to raise the debt ceiling without them.
"We don't have a choice," said Rep. John Tanner, D-Tenn. "We are on an unsustainable march toward a fiscal Armageddon."
Obama's budget projects the government's debt doubling to $26 trillion over the next decade. It offers few solutions for seriously closing the gap other than promising to appoint a bipartisan commission to come up with a plan to address the problem.
The bill is H.J. Res. 45.
#11 Feb 6, 2010
House raises debt ceiling by $1.9T
The bill is H.J. Res. 45.
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