Wednesday, February 4, 2015

Obama budget . My thoughts.

I don't know that adding ***4 trillion dollars is going to help the federal deficit . I willing to believe that Pres. Obama is (5)> looking for a bargaining chip .Barack Obama sent Congress on Monday is his blueprint for reviving "middle class opportunity." Liberals are thrilled by the (2)>  re-distributive thrust of the president's budget -- it would hit affluent Americans with a battery of new tax hikes, (1)>  totaling $2 trillion over the next decade, and use the proceeds to finance substantial tax cuts for low and middle income families. There is much ballyhoo we get the "President's Budget" along with the invariable pronouncements from Congress that it: "is dead on arrival. Why does he even do one? Well, he does one because the Congress has chosen to shirk its constitutional duty by passing laws that shifts their duty to the Executive. President Obama has packed more than (3)>  20 new tax increases into his proposed 2016 budget, which Republicans roundly blasted Monday as a tax-and-spend agenda that won't get their support. Together, the tax increases total more than $2 trillion over the next decade. The president plans to use much of that to fund new middle-class tax cuts, as well as ambitious spending programs for highway construction, education benefits and more. In addition, top earners would see an increase in capital gains rates -- to 28 percent, up from the current 24.2 percent rate. The change would raise nearly $208 billion. Some of the biggest tax hikes in the budget also include a 14 percent, one-time tax on previously untaxed foreign income (raising $268.1 billion); a 19 percent minimum tax on foreign income (raising $206 billion); and a fraction-of-a-percent fee on the 100 financial firms with assets of over $50 billion (raising $111.8 billion). The budget plan, while gearing tax hikes toward the wealthy and tax benefits toward the middle class, wouldn't exclusively hit the top tier. It would also hit smokers of all kinds, who under the president's plan would see the per-pack tax rise from $1.01 to $1.95, bringing in an additional $95 billion in revenue. At the same time, his request for a 4.5% increase in military spending—at a time when many Republicans are urging a boost for the military—and a corporate-tax revamp to pay for huge infrastructure spending were aimed at kicking off a serious conversation with GOP leaders. It makes Pres. Obama "look Republican " only on his military spending (hoping he's going to fight the Islamic State ) The central question that Mr. Obama’s budget will pose to Congress is this: Should Washington worry about what may be the defining economic issue of the era — the widening gap between the rich and everyone else — or should policy makers primarily seek to address a mountain of debt that the White House hopes to control but only marginally reduce as a share of the economy?

 Social Security?
Obama's budget included the transfer of tax revenue from the program's retirement fund to the disability fund, which would otherwise start being unable to pay full benefits in late 2016. House Republicans passed a rule in January that would block the transfer -- known as reallocation -- unless Social Security's overall solvency was improved.For instance, the 2016 Budget includes language supporting the enhancement and protection of Social Security retirement benefits, broader retirement plan coverage, and increased savings opportunities, but at the same time takes aim at limiting savings opportunities through IRAs, Roth IRAs, and qualified plans, such as your employer-provided 401(k) plan.While the President’s 2016 Budget gets a lot of things right with regard to Social Security, including strengthening the system and increasing benefits, it lacks any real proposal on how to fix the upcoming shortfall. 

***Giving the president the benefit of the doubt, he may have forgotten that he has already increased
the national debt by $6 trillion. You'd think they'd know, but they may be working from an old budget that Harry Reid never introduced in the Senate. I'm sure it's all just a big mistake.
The budget shows a $474 billion deficit for fiscal 2016. Obama's budget plan never reaches balance over the next decade and projects the deficit would rise to $687 billion in 2025. Administration officials say their goal is to hold the deficit to a small percentage of the total U.S. economy -- but not necessarily to eliminate it. (1)> Has everyone forgotten that our Federal government budget process is nothing more than a shell game, before, now and in the future?  They operate on the cash basis while all of the rest of the corporate world must use accrual accounting.  The true deficit is trillions higher than what everyone thinks it is due to the use of cash accounting.  And how about this one: our Federal government can't be audited like every other public company is required to be.  Why?  They are unable to develop financial statements accurate enough to be audited.  None of the above is the fault of the current President yet many would say it is. Social Security Trust Fund goes negative in 2017?  That means that henceforth, general tax revenues will have to be used to support these transfer payments.  (2)> 
 – how does redistributing money reduce income inequality? Unless you keep doing it year after year after year, there is no permanent change. Furthermore, although we have learned to hate and despise the rich, they are still too few in number to make everyone wealthy simply through redistribution.(3)> One of the most aggressive climate-related proposals in Obama’s budget is a call to reform how different kinds of energy companies pay taxes. Under Obama’s proposal, oil and gas companies would be stripped of billions of dollars in tax incentives they receive — $44 billion over a decade, to be specific — and renewable energy companies would reap the benefits. Over that same decade, the budget would allocate $31.5 billion toward permanently reinstating the Production Tax Credit for wind energy, and permanently extending the 30 percent investment for solar energy systems.(4)> There were no negotiations. He had his plan which was to tax and spend and the republicans had theirs which was do not raise taxes during a recession. How many times have you ever seen any money that is taken by the government actually make to the hand of the middle class? Money in your hand that you can actually spend. Other than when Bush sent out checks to each one that paid in taxes I have never seen any. Some tax credits for popping out more kids is usually what you end up with.

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