Obama unveiled his 2010 budget plan of $3.55 Trillion dollars. This budget will result in a record deficit of $1.75 Trillion.
Given the state of the economy, you would anticipate that action would be taken to not only increase jobs but show some fiscal restraint. Instead, this plan includes a $634 billion down payment on expanding health care coverage that will be partially funded by a $318 billion tax increase on buisness owners. That is neither fiscal restraint nor pro-job creation.
The President will be pushing to make the working-class tax cut ($400/year) permenant. Perhaps that will help cover the increase in product cost that will occur when the cost of the tax hike is passed down to consumers… perhaps not.
Included in the plan is a proposal to inact a carbon cap and trade scam, potentially costing corporations hundreds of billions of dollars.
The projected deficit totals 12.3% of the gross domestic product, more than twice the previous post-war record of 6% in 1983, under President Reagan, and the highest level since the deficit totaled 21.5% of GDP at the end of World War II.
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Posted under Economy
Written by admin on February 26, 2009
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How could the trade scam idem cost corporations hundreds of billions of dollars?
With one of the options including auctioning credits, the costs add up quickly. Somehow I doubt the Government will be in a rush to offset these costs with a reduction of other taxes.
Even if the auction system isn’t applied, corporations tend to game the system for short-term cash at a long-term loss (something even more greatly motivated by the current credit crunch). Admittedly this is an issue corporations will bring upon themselves, but in the end it hurts employment and end-consumers.