I’ve told you that Obama is the great illusionist. Well the magic man Obama is up to his old hat tricks again on his nearly $4 trillion dollar budget, $3.55-$4 trillion depending on how and who adds it up.
The $3.55 trillion budget proposal for 2010 the president unveiled yesterday projects 3.2 percent economic growth next year, thanks to a $787 billion fiscal-stimulus measure he signed into law earlier this month that is aimed at creating jobs and consumer demand.
This is a lot of assuming and assuming results on a $3.55 trillion budget is very, very dangerous and it’s painfully bad business. The Congressional Budget Office project 1.5% for the same period and Obama’s budget projects 3.2% … would you say Obama is being a little to optimistic or just unrealistic?. As stated in a article from Bloomberg News
“Even those projections may be too optimistic: Federal Reserve Chairman Ben S. Bernanke said this week the U.S. is suffering a “severe” contraction, and a government report today may show the economy shrank more than previously forecast in the fourth quarter.”
Obama’s numbers and his budget relies heavily, to heavily on massive economic recovery and unprecedented growth. I mean really is this something to base a plan on, better yet a $3,550,000,000,000.00 budget? Well it is “just words” … “just speeches”.
Others say …
“You can’t spur economic growth on your left hand in this economic environment while on your right hand you’re raising taxes,” said Tim Speiss, a partner in charge of the personal wealth group at Eisner LLP, a New York-based accounting and advisory firm.”
If you listen to Obama, he will not tell you about all the assumptions that he plan relies on without telling you that it is just that an assumption. Obama will, as always talk a good game and rally his base, but talking a good game doesn’t put points on the score board or money in your pocket. Obama is going to raise the following taxes, most of which you will pay either directly or indirectly …
The so- called cap-and-trade system of government-issued permits to pollute will be $646 billion over 10 years, beginning in 2012. This is the energy tax that will be passed on to the taxpayer and end consumer by energy providers and product producers via increased cost.
$175 billion over 10 years by forcing insurance companies to compete for Medicare insurance business under the Medicare Advantage insurance program. Again this is a tax that will be passed on to the end consumer … you. By forcing insurance companies to take less from Medicare, that company will make up the difference in increased premiums.
Per Bloomberg “The bulk of the additional revenue would come from the approximately 2.6 million Americans who currently pay in the top two income tax brackets, which take effect at $164,550 of taxable income for single taxpayers and $200,300 of taxable income for married couples who file joint returns.” That appears to be less than the $250,000.00 Obama keeps telling you about. Just in case you do not know many small businesses file as a household, 1040 form and $200,300.00 is not that much in small business, often the business owner makes less than minimum wage, the rest is reinvested.
“Obama’s proposal would cap the value of deductions for items such as charitable donations, mortgage interest and investment expenses at 28 percent for people in the top brackets, or 30 percent less than they would otherwise receive.” So say goodbye to charitable giving, business investment and high end home sales and building.
Capital gains tax up from 15% to 20% so sell your home now to maximize your profits.
“The budget also proposes $353.5 billion in higher taxes on corporations over the next decade, the bulk of which would come from changing rules that allow U.S.-based multinational corporations such as General Electric Co. to defer U.S. tax on profits they earn overseas. The budget also targets a widely used accounting method known as “last-in, first-out” for a tax increase and would repeal several benefits for oil and gas companies.” Say hello to more increased energy cost, product cost of goods.
“Other policies would extend tax subsidies for the working poor, such as a more generous child tax credit for larger families.” So get out there and breed poor people we don’t have enough people on the government tit already.
More reading here …