Obama Unveils His “Take it Or Leave It” $3.77 Trillion Budget
Said budget has managed to annoy both Democrats and Republicans
(Washington Post) President Obama plans Wednesday to unveil a $3.77 trillion spending plan that proposes modest new investments in infrastructure and education, major new taxes for the wealthy and significant reforms aimed at reducing the cost of Social Security and Medicare.
As Washington barrels toward another potential showdown over the federal debt limit later this summer, administration officials said the blueprint lays down the president’s bottom-line offer for getting federal borrowing under control.
“We don’t view this budget as a starting point in the negotiations. This is an offer where the president came more than halfway toward the Republicans,” a senior administration official told reporters Tuesday, speaking on condition of anonymity to detail the forthcoming document.
So, Pharaoh Obama is saying “here it is. I won’t negotiate on it. Pass it. Period. So let it be written, so let it be done.” Republicans aren’t keen on it, based on the pre-release information, as it increases spending, taxes, and deficits. The GOP says they already did tax increases during the previous deal, and won’t allow more taxes now. Obama’s budget imposes the “Buffett Rule”, requiring the uber-rich to pay at least 30% of their earnings (no mention of whether this is aimed at just “income” or includes all earnings, such as with capital gains) which will not take into account any charitable giving.
Liberals are upset over the supposed reductions in safety net programs, SSI, Medicare, Veterans Affairs, etc. The Chained CPI notion has really got the Dems panties in a bunch.
While seeking to reduce borrowing, the budget plan also proposes new spending to pump up the sluggish economy. The blueprint includes $50 billion for infrastructure projects, $1 billion for 15 new institutes to promote innovation in manufacturing and $8 billion for community-college programs that prepare students for existing jobs.
So, more pork barrel spending on infrastructure that should have been fixed through the Stimulus. Money to hook up Obama donors while he picks and chooses winners and losers. Money to train people for jobs that are not available in the Obama Economy.
The cost of those investments, officials said, would be covered through new taxes, including a $3 million cap on the value of individual retirements accounts and higher taxes on investment income earned as “carried interest.” Obama is also proposing to raise taxes on tobacco products to pay for a dramatic expansion of pre-school programs for low-income 4-year-olds.
All people will do is move the money that would have gone into IRAs elsewhere, which could take that money out of the US economy. When you’re talking about quite a few IRAs, yes, the money is meant to be shielded from the government taxing it, but it ends up being used for lots and lots of investments, including home and business loans, venture capital, mutual funds, stocks, and other means that help the private economy and other Americans.
Anyone want to place a bet on whether Senate Majority Leader Harry Reid (Dem) will even bring it up for a vote? I’m betting “no way in hell”. It’s a more serious budget than Obama has proposed previously, but it’s a loser from the get go.