Today President Obama released his proposed 2010 Budget. Here are some of the notable spending areas:
• The budget has $4 trillion in spending for the 2010 fiscal year.
• There is a possible $750 billion dollars available in additional bank bailout funds this year.
• There is a proposal for a $634 billion fund to reform healthcare, which is part of a 10 year spending plan to cover the cost of universal health care coverage – the total is projected at $1 trillion.
• There is a line item for $75 billion for the wars in Iraq and Afghanistan through September.
• The Office of Management and Budget projects the government's deficit for this year will soar to $1.75 trillion.
It appears much of the funding for this spending plan will come from new tax increases:
• He plans to increase the taxes for people making over $250,000. It is estimated the increase will generate $318 billion.
o It will limit the tax rate for itemized deductions to 28% percent for tax filers over $250, 000.
• The plan also calls for letting the Bush tax cuts expire.
Although he is marketing his plan as tax increases for the rich, unfortunately many small businesses may be adversely affected. Many experts are skeptical that the tax increases will actually produce the kind of funds the proposal has projected. Obama is also pledging to cut the federal deficit in half by the end of his first term.
We are working through the entire budget and will keep you updated on any news.