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Obama to propose tax increases, war spending cuts, in next budget
Feb 21, 2009, 23:06 GMT
US President Barack Obama (R) and US Vice President Joe Biden address leading mayors of the United States, at the East Room of the White House in Washington, DC, USA, 20 February 2009. EPA/MICHAEL REYNOLDS
Washington - US President Barack Obama plans to outline a budget next week that would cut the federal deficit in half over the next four years by raising taxes and cutting spending on the war in Iraq, newspaper reports said Saturday citing details from administration officials.
A summary of his budget plans, to be sent Thursday to the US Congress, will be 'sober in its assessments, honest in its accounting,' Obama said earlier Saturday in his weekly address to the nation.
Some of the details were revealed to the Washington Post and New York Times, and Obama plans to discuss them Monday at the White House at a 'fiscal responsibility' bipartisan summit with lawmakers, economists and advocacy and special interest representatives.
The full budget will be sent to Congress in April for the fiscal year beginning in October.
The challenges are immense in cutting the deficit even as the government is pouring out several trillion dollars to stabilize the financial system, boost job creation and rescue up to 9 million homeowners threatened with foreclosure.
'It will require doing all we can to get exploding deficits under control as our economy begins to recover,' Obama said.
Obama described his strategy as 'investing in what we need, cutting what we don't, and restoring fiscal discipline.'
The key to reducing the deficit is tackling the long-term budget drains such as Social Security and Medicare, which could be addresssed through Obama's ideas about streamlining the health care system.
But Obama will likely be most concerned with the short-term problems, according to administration officials cited by the newspapers.
Obama has inherited a budget deficit of at least 1.2 trillion dollars, or 8.3 per cent of the overall economy, for the current year - an amount that could rise to 2 trillion dollars in light of the economic crisis.
His budget for 2010 would target reducing the annual deficit to 1 trillion dollars and lower it to 533 billion dollars by 2013, or 3 per cent of the economy, a level endorsed by most economists for world governments, the Post reported.
The savings would come from winding down the war in Iraq and increasing tax collections by for example reversing the temporary tax cuts for the wealthy, officials who spoke on condition of anonymity told the newspapers.
The idea of increased tax collections is likely to hit strong resistance from Republicans in Congress, who have the power in the Senate to carry out procedural moves to block a bill.
On Tuesday, Obama will deliver a major address to Congress and the nation that will likely address many of the economic issues at stake.
'None of this will be easy. The road ahead will be long and full of hazards,' Obama said. 'Im confident that we, as a people, have the strength and wisdom to carry out this strategy and overcome this crisis.'
Investor confidence continued to fall last week on reports that bank nationalization could be an option for the government. White House spokesman Robert Gibbs moved to squelch such ideas, saying Obama still believes 'a privately held banking system ... is the correct way to go.'
So far this year, 14 US banks have collapsed, on top of 25 that went under in all of 2008.
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Older Talkback
page: 1
And just what does he think the wealthy are going to do with their money? They will always find a way to hide or take it offshore. Those wealthy that get taxed are most likely those who are empoying vast numbers of peoples and they are going to cut back by laying off employees. Plain and simple. This same old tired scheme has been tried over and over again and failed.
'And just what does he think the wealthy are going to do with their money?'
news.yahoo.com/s/afp/20090221/bs_afp/switzerlandusbankingcompanyubscour t_20090221135059
There is an inventor from Wisconsin who invented an all-electric car in the form of a Ford Ranger that was shown at the KARE 11 fair booth at the 2008 Minnesota State Fair.
It is capable of reaching 100 miles per hour in speed, has a range of 300 miles, charges in 10 minutes and is pollution free with only the pollution that is done to make the electricity to charge it.
The inventor of this invention has, to my understanding, approached Ford Motor Company with his invention. The Ford Motor Company, in my estimation, should latch onto this idea, pronto.
My understanding is there are members of Congress who are trying to shoot down this idea of an electric car.
Where is there any common sense in this country?
Official: Obama plans to slash deficit in half:
news.yahoo.com/s/ap/20090222/ap_on_go_pr_wh/obama_budget
What a joke! He is planning to slash it back to the record highs of the Bush administration, continuing the same old mistakes of the Bush administration.
Hi! My! Name! Is! Obama! Lets have a debt sale: I will mark up the debt 300 percent and then have a debt sale by slashing the markup down to 'MSRD' (Manufacture Suggested Retail Debt), just like they do it at all 'going out of business' fire sales.
In other words: The 'typical U.S. citizen' is a sucker for a sale at any price. Mark it up by 3 times, then slash it down to 1/3 and they think they are getting a deal.
SUCKERS!
just wondering are you from America? thanks
No, he is not from America. No one knows where lance dwells, not even lance. Lance hasn't got a clue about anything. All that is really known is somebody farted and there is lance, lingering like the bad odor he is.
Dear Diogenes,
Do I recognise something of your style in the previous post?
Perhaps: But wait until I nail SP4!
Indeed, 'tis I, Diogenes the Cynic. After climbing Mount Olympus and spending the day fishing with the Gods, I descend once more to the land of the bland, the boring, cheap shots and the cesspool of wasted brains.
Very, very good. Good demonstration of the 'typical U.S. citizen'. When faced with subjects about an economic crisis, they resort to name calling.
Good 'typical U.S. citizen'. Please keep up the excellent display of apathy and 'willful ignorance'.
Lets see if my rattling your cage breaks your 'willful ignorance' and you can amount to more than what you have displayed so far.
In reference to lance, I should have said 'and the inane and insane.'
Yes let's all pay higher taxes while the billionaire elites get to hide their money in tax-free shelters like Switzerland, Antiguia and the Caymans.
If Obama just had the balls to go after these crooks that have NEVER paid their fair share of taxes, then he wouldn't need to raise taxes on the rest of us.
Welcome to capitalism, where your rich neighbor gets to stay rich and you get the shaft.
Switzerland isn't the only place where they can hide their money.
Andy many of the billioniares are supporters of him like Mr. Soros.
page: 1
lanceFeb 21st, 2009 - 23:19:07
'pouring out several trillion dollars to stabilize the financial system'
Money does not stabilize the financial system, the threat of going bankrupt is the only thing that keeps those leaches in check.
'boost job creation'
Welfare creation is NOT job creation. How many times does someone have to be reminded of that.
'rescue up to 9 million homeowners threatened with foreclosure.'
Like pouring a drop of water on an inferno. He is not 'rescuing' them, Obama is prolonging their agony. The only thing that would rescue them (from themselves) is foreclosure and bankruptcy.
... in summary: A whole article about a budget and not one 'balance' word, as in : balance-sheet or balanced-budget.
What a shitty world where people use 'budget' but mean: 'payoffs' and 'bribes'.
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