President Obama delivered to Congress on Monday a $4 trillion budget plan that raises billions in new taxes on high income earners and businesses in order to fund a series of new efforts to help lower and middle income Americans in the future.
The phone book type budget document landed on Capitol Hill this morning:
The budget bottom line is pretty simple – this Obama budget for Fiscal Year 2016 does not come close to being balanced, with an estimated deficit of $474 billion next year, ultimately adding almost $6 trillion to the debt by 2025.
Overall, the President’s plan would raise $1.69 trillion in new tax revenues over the next ten years – some of the highlights:
+ Limit deductions on the wealthy – $603 billion
+ Higher taxes on capital gains – $207 billion
+ Changes in inheritance taxes – $189 billion
+ Financial fee on big banks – $112 billion
+ Increase in tobacco taxes – $95 billion
+ Changes in self-employed taxes – $74 billion
The budget would also spend more than is currently allowed under budget caps that were agreed to by both parties in the debt limit deal of 2011.
That drew a quick reaction from Republicans in the Congress.
The White House obviously sees this budget in a much different light – this was sent to reporters this morning by the Office of Management and Budget:
“The President’s 2016 Budget is designed to bring middle class economics into the 21st Century. This Budget shows what we can do if we invest in America’s future and commit to an economy that rewards hard work, generates rising incomes, and allows everyone to share in the prosperity of a growing America. It lays out a strategy to strengthen our middle class and help America’s hard-working families get ahead in a time of relentless economic and technological change. And it makes the critical investments needed to accelerate and sustain economic growth in the long run, including in research, education, training, and infrastructure.”