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What You Need to Know About President Obama's 2012 Budget

Politics / Government Spending Feb 14, 2012 - 07:54 AM GMT

By: Money_Morning

Politics

Best Financial Markets Analysis ArticleDavid Zeiler writes: U.S. President Barack Obama's 2013 budget proposal will give Republicans and Democrats plenty to fight about.

The $3.8 trillion budget proposal, submitted to Congress, essentially follows the blueprint President Obama outlined in his State of the Union address.


That means fewer spending cuts and more taxes than Republicans will like.

So if you thought last summer's wrangling over the raising of the debt ceiling was nasty, watch the rhetorical Armageddon when those battles get re-fought in an election year.

President Obama's 2013 budget sets much of the agenda for the stormy election season ahead. These points will help you make sense of the chaos.

What You Should Know About President Obama's 2013 Budget

1.Congress Sets the Budget: The fact is Congress, not the president, ultimately controls the federal purse strings. While much hoopla will accompany President Obama's 2013 budget, presidential budget proposals often serve more as a political billboard than a framework for how money is collected and spent by the government.

So President Obama's budget will provide talking points for his 2012 re-election campaign and targets for the Republicans who seek to defeat him.

"Every budget proposal is partly a serious policy document and partly a political statement,"Stan Collender, a former staffer for both the House and Senate Budget Committees, told msnbc.com.

2.No Budget, No Problem: Not only can Congress reject the president's budget, it doesn't even have to vote on it. Congress has little incentive to vote on the budget this year. In addition to Republican opposition, many Democrats in swing districts won't want to go on record voting for any kind of tax increase.

Last year the Senate rejected President Obama's 2012 budget by a 97-0 vote.

In fact, Congress has not approved a budget for over 1,000 days, getting by with stopgap spending bills in the interim.

3.A Taxing Issue: As expected, President Obama's 2013 budget includes tax increases for the wealthy. That will keep tax issues in the spotlight this year, since Republicans have vowed to oppose tax increases of any kind.

The president included the so-called "Buffett Rule," which creates a 30% minimum tax for anyone making $1 million or more. It would replace the Alternative Minimum Tax (AMT).

More controversial is the proposal to tax dividends as ordinary income for those making $250,000 and up. Now the top dividends rate is 15%. President Obama would also raise the top rate on taxes on capital gains from 15% to 20%.

Those proposals will help President Obama position himself as a defender of the middle class against the rich, while giving the GOP ammunition to accuse him of "class warfare."

4.Another Year Older and Deeper in Debt: Although President Obama will say his budget includes $4 trillion in deficit reductions over the next decade, Republicans will tell you that the 2013 budget deficit is $1.33 trillion.

That's the fourth straight year the president's budget deficit has exceeded $1 trillion. Expect to hear a lot about it, as the Republicans will waste no opportunity to remind Americans of President Obama's promise in 2009 to cut the deficit in half.

It also could reignite the debate over the national debt, which is now over $15 trillion and equal to the country's annual gross domestic product.

5.Fuzzy Math: You'd think the government would at least be able to keep accurate figures on how much money it spends, but no. It literally depends on whom you ask.

For example, the Office of Management and Budget (OMB) put 2010 spending by the Department of Health and Human Services at $854 billion. The Census Bureau says the figure is $944 billion. Differences in accounting methods account for the whopping $90 billion discrepancy.

And that doesn't get into all the accounting voodoo in the budget itself, which often relies on unrealistic assumptions.

"ToWashington, these are rounding errors," Pete Sepp, executive director of the Alexandria, Virginia-basedNational Taxpayers Union, told Bloomberg News. "To the rest of America, this is real money that could help real people with real problems."

Source http://moneymorning.com/2012/02/14/president-obamas-2013-budget-five-things-you-should-know/

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Comments

reXteryalizer
15 Feb 12, 22:40
Obama

Want to thank all of you, for your Powerfull stand against Oboma & His Corrupted political partners.

But there is so much more we can do. Being aggressive and focusing on the facts and truth is only the first step.

We musT follow Up with more details standing by our convictions and dont back down.

Oboma has NOT brought CHANGE, In fact ~! ~ THE ONLY real THING needing CHANGE !....Was Barack Hussein Obama II.

HIMSELF

Barack Hussein Obama II ( Who hates American Values ) who is A " SELF PROCLAIMED

Enemy" ~of responsible, Morally Conscious HARD WORKING Americans.

oBOMAS Irresponsible & DRUG MAFIA and reckless supporters KNOW~ that Barack Hussein Obama II, WILL FORCE YOU to paY THEM, out of your PockeT .{ FOR all of their UNCHECKED Vices and THRILLS/

{ All on YOU

| / At your COST & Sacrifice.\

...This UN~CHANGABLE fraud, has done His VERY BEST to Inspire VIOLENCE.

THESE ARE OBAMAS OWN WORDS.. saying ......To his supporters.Saying “Get ready for hand-to-hand combat with your Fellow Americans” – Obama has ALSO DECLARED to his Supporters. “I want all Americans to get in each others faces!– Obama Demands !

“You bring a knife to a fight pal, we’ll bring a gun” –

THESE ARE OBAMAS OWN WORDS.. ANGER VIOLENCE And more taxes..... THIS IS OBAMAS Change for america /“Hit Back Twice As Hard”. He commands ! *Obama on the private sector: ~~ “We talk To these folks…~ / so I know whose a*$ to KICK.“ OBOMA wants to KICK your a*$ /```

Shouting THAT Republican victory would mean ~ “hand to hand combat” and HE IS EXPECTING people to be on Edge and ON BORDERLINE killing MODE, `` VIOLENT / and STAND and STOMP and MOB for their immoral CAUSES and THIS IS WHAT HE LIVES FOR ./ ./ ./ THESE ARE OBAMAS OWN WORDS.. !* Obama Tells Democrats: “ I’m itching for a fight.” !

....PLEASE.... go to reXes NEW WebsiTe ~ ! Oboma *( Just like Adolf Hitler~~\oBOMA~~~

Demands ! -- [ THE FINAL SOLUTION - for Un~Wanted Children

Barak Obama is A MURDERER .~Torturing UNWANTED babys on DEATH ROE.

CLICK HERE http://obomlnation.webstarts.com/index.html

OBAMA TAKES a little NEW BORN innocent child, BORN ALIVE sTabS it iN the head and SUCKs ITS BRAINS OUT.

This is just too wrong and horrible. Please stand for Loving Children and the USA.

Respectfully and Thankfully Thank you ALL for your Time.

To see HORRIBLE HONOR Killings~` HATE CRIMES ]`~ ! eXecuted by the CLINTON,RENO and ATF Media WHO COMMITTED H0NOR KILLINGs [ SLAUGHTERING }] 21 LITTLE Helpless Children at Waco.

Click Here http://obomlnation.webstarts.com/partly_born_totally_murdered.html


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