Thursday, February 26, 2009

Wealthiest Will Get First Tax Hike in 16 Years in Obama's Budget

Healthcare reform is an integral part of the budget. See highlights of Health and Human Services funding here.
People like Michelle Bachmann (you remember her) are going to hate this budget because it hikes taxes for those who make $250K or more. Bachmann thinks rich people are an endangered species. Expect that to be the big whine today and tomorrow. The wealthiest haven't had a tax hike in 16 years!
President Barack Obama is proposing the first tax increase on high-income earners in 16 years to help pay for sweeping health-care reforms, asking the U.S. Congress to cap the tax deductions for affluent Americans.

The move would reverse a course set by former President George W. Bush of lowering taxes for high-income people, the cornerstone of his administration’s economic program. Bloomberg
Check out the budget online here.
Peter Orszag's first blog post:
Welcome to my first blog post at the Office of Management and Budget.

In this blog, I want to open up OMB even more to the public and share with you what we’re doing to address the many challenges that we face as a nation. I know that, for many people, blogs are the easiest way of receiving information – so this blog may prove to be useful even if it simply provides a convenient way of keeping up with information from OMB that is already available in other formats. President Obama is committed to ensuring a direct link between citizens and our federal government. Especially in light of our difficult economic times, I am committed to ensuring that OMB’s work is accessible. Although OMB is extensively discussed in the media and elsewhere, the blog will allow me to communicate and explain our work directly.
Today, we’re releasing the overview of the President’s Fiscal Year 2010 Budget.
Read the rest
Read the transcript of Obama's budget talk here.
Early republican reaction:
Representative Mike Pence of Indiana, the No. 3 Republican leader in the House, said Obama can expect a wall of opposition to his proposed tax increase. Roughly half of Americans earning $250,000 are small-business owners, and the proposed increase will stifle the troubled economy, he said.

“There will be overwhelming opposition from the American people and House Republicans to the idea that we should raise taxes during a recession,” Pence said in an interview. “Raising taxes in a recession is not a strategy for recovery.”

Representative Jeb Hensarling, a Texas Republican, said in an e-mail, “You cannot help the job seeker by punishing the job creator. This is exactly the wrong time to be raising taxes on anyone, not the least of which are our small businesses that create new jobs in America.” Bloomberg