OBAMA’S BUDGET IS A TAX AND SPEND PROGRAM…

Posted on February 26, 2009. Filed under: Obama Unveiled... |

 
If you ask me, Obama is the new "Tax and Spend" president.  People are portraying him as the "working man’s president".  They are right because we have to work our tails off just to make ends meet and pay for his out-of-control spending.  Since he’s been in office, he has spent $36 billion a day, and he has the audacity to say we’re in this mess because of Bush.  During his speech, he said "…with the debt that we inherited", with the Democrats laughing after.  Remember when Obama said "With the deficit we inherited, the cost of the crisis we face, and the long-term challenges we must meet, it has never been more important to ensure that as our economy recovers, we do what it takes to bring this deficit down."  Don’t forget that he’s going to cure cancer as an encore.  Excuse me, but to be realistic here, it’s more like "the debt that the Democratic party brought on themselves".  As I’ve said one hundred times before, the U.S. economy is going down the drain along with everyone’s retirement accounts because of the Democrats.  Bill Clinton had a big role in this crisis that we’re in, believe me.  The stroke of a pen was all it took to start the downward spiral.  Obama’s stroke of a pen was all it took to continue the downward spiral with his stimulus package.  Obama has actually tripled what Bush left for him.  They’ll be blaming Bush for the next four years, as I’ve said before.  According to gageway pundits, Democrats have already spent twice as much as the cost of the War in Iraq.  They are likely to spend 6 times as much as the total cost of the Iraq War before they are through with their bailouts.  The "deficit they inherited" is a drop in the bucket to what they are doing to this economy.  But, don’t expect the media to point this out.
 
 
In a previous post, I wrote about how Bill Clinton repealed the Glass-Steagall Act of 1933…or as I like to call it:  "The bill that Bill repealed and the bill that we’re footing the bill for now."  For those of you who don’t know what the Glass-Steagall Act is, I have included a description from an investment dictionary:  "It was the Act passed by Congress in 1933 that prohibited commercial banks from collaborating with full-service brokerage firms or participating in investment banking activities.  It was enacted during the Great Depression.  It protected bank depositors from the additional risks associated with security transactions. The Act was dismantled in 1999.  Consequently, the distinction between commercial banks and brokerage firms has blurred; many banks own brokerage firms and provide investment services."
 
Franklin D. Roosevelt signed this bill into law back in 1933, and ironically, another DemocRAT, Bill Clinton, repealed it, signing it into law in 1999 which was called the Gramm-Leach-Bliley Act (Leach…aptly named).  This was the start of the sub-prime mortgage feeding frenzy by the banks.  There was a lot of press about how after Clinton signed the repeal, he ceremoniously offered it as some kind of trophy.  Now you know who ended up benefitting from this move…
 
This is an excerpt from the link below:
 
"On Oct. 22, 1999, Weill and John Reed issue a statement congratulating Congress and President Clinton, including 19 administration officials and lawmakers by name. The House and Senate approve a final version of the bill on Nov. 4, and Clinton signs it into law later that month.
 

Just days after the administration (including the Treasury Department) agrees to support the repeal, Treasury Secretary Robert Rubin, the former co-chairman of a major Wall Street investment bank, Goldman Sachs, raises eyebrows by accepting a top job at Citigroup as Weill’s chief lieutenant. The previous year, Weill had called Secretary Rubin to give him advance notice of the upcoming merger announcement. When Weill told Rubin he had some important news, the secretary reportedly quipped, "You’re buying the government?"

 
I never did trust a Clinton, and I don’t trust Obama either.  Obama follows Bill Clinton.  Heck, he followed him to Harlem by opening up a campaign office there when he was campaigning.  Clinton must have offered him some of his tarnished advice…Clinton has an office in Harlem as well.  Seems they’re partners in crime.  Whose votes do you think they went after back then?  Here’s an article about Obama’s fundraiser in Harlem.  This is the real Obama.  I guess it’s still OK for blacks to say racial comments about white people, with Obama leading the pack.  When Obama is with black people, he speaks a different language then when he’s with a diverse crowd.  How despicable, and people are totally oblivious to these facts:  http://blogs.usatoday.com/onpolitics/2007/11/whats-new-18.html
 
Thankfully, Obama listened to Bill Clinton by ditching the doom and gloom rhetoric he’s been preaching to us in favor of a much more uplifting and inspirational message about America’s outlook for the future.  Funny how he ran his campaign with a reverse message, saying that we needed him because we’re on the brink of disaster.  I saw a different message when I drove by restaurants and malls and saw lots of vehicles in the parking lots with people spending money, although on a smaller scale, but at the same time, the media showed the bread lines of the Depression in the news which was a deliberate scare tactic to coerce people into voting for Obama so we wouldn’t face a crisis like the Great Depression.  Sad to say, it worked, but I’ve got news for you.  He’s spending so much money that we don’t even have, that we’re heading in that direction with his help.  The media will soon be turning on him as fast as they turned on Bush when things weren’t to their liking.  Obama sent Capital Hillary to China to beg for a U.S. bailout.  How despicable is that?  Because of Obama, America is up for sale to the highest bidder.  Ironically, Obama is chastising CEOs for reckless spending then begging for a bailout, saying they have to answer to him, but here he is doing the same thing…spending $36 billion a day and sending Capital Hillary to China to beg for a bailout.  How is this any different?  Yet another classic example of "Do as I say, not as I do."  The difference is, this time he’s got to answer to the American people, not to himself.  He is not presidential material.  We need a president who is the real deal, not a cheap Democratic knockoff, which is what he is.
 
Politicians are all "corruption vaults with deep pockets".  He’s been telling us that he’ll only tax the rich, but in reality, he is taxing the poor in the long run.  Large companies will now be downsizing to keep their costs and taxes down because Obama is raising them.  Small businesses who are doing well will be doing the same to cut costs.  How is that going to help small businesses?  How will that help us?  In this past election, people voted with faith, hope and confidence, and now it seems that we’re all disappointed.  Obama is all talk with no substance.  He’s now saying that he wants to raise $634 billion over ten years for a healthcare overhaul.  He’s been spending money just as fast as he’s been raising taxes.  In the end, we’re all going to be paying for Obama’s actions.  Some of us already know that you can’t spend your way out of a recession, and Obama and those who support him will learn this soon enough…
 
QueenBee
 
 
 

Obama’s Budget Projects $1.75 Trillion Deficit

President’s budget being sent to Congress today will call for nearly $4 trillion in spending in fiscal year 2010 and creates space for up to $750 billion in additional bank bailout funds.

FOXNews.com

Thursday, February 26, 2009Top of Form

 

Feb. 25: President Obama speaks in the Diplomatic Reception Room of the White House after an economic summit. (AP)

President Barack Obama is sending Congress a budget Thursday that projects the government’s deficit for this year will soar to $1.75 trillion, reflecting efforts to pull the nation out of a deep recession and a severe financial crisis.

 

Obama’s budget overview will call for nearly $4 trillion in spending in fiscal year 2010 and creates space for up to $750 billion in additional bank bailout funds this year – money that hasn’t been requested and the administration hopes will not be necessary to stabilize the still-reeling financial system.

Senior administration officials would not disclose a precise figure for the entire budget, but said it would likely fall between $3.8 trillion and $4 billion for the fiscal year beginning Oct. 1. The White House will formally release its budget overview at 11 a.m. Thursday. 

The president’s budget will also set aside a $634 billion "reserve fund" as a down payment to cover roughly two-thirds of the anticipated 10-year cost of universal health care coverage — projected at $1 trillion.

The administration will work with Congress to locate the remaining funds to finance the plan.

"This is a very significant down payment," a senior administration official told FOX News. "We consider putting this reserve fund on the table a more auspicious approach to getting this done this year."

The White House contends by directly telling Congress how much universal health coverage is projected to cost, it can devote more time to debating the methods of achieving coverage instead of getting bogged down in conflicting cost estimates.

The president will finance about half of its "reserve fund" allocation by limiting itemized deductions to couples who earn $250,000 or more to 28 percent of the total itemized deductions they claim.

This change is projected to generate $317.8 billion over 10 years, or roughly half the cost of universal coverage.

The president also will seek $177 billion in savings over 10 years by reducing government subsidies to Medicare Advantage, the private-sector insurance component of Medicare. Under Medicare Advantage, private insurers provide government-approved health insurance coverage and are reimbursed for costs on an annually adjusted basis.

The administration will tell Congress it is setting aside upwards of $750 this year in case major U.S. banks need more capital to survive. This figure exceeds by $50 billion the $700 billion allotted in the first Wall Street bailout, known officially as the Troubled Asset Relief Program (TARP).

A senior administration official who briefed on the budget outline insisted these funds haven’t been requested and that the administration sees no current need to request them. However, the president told Congress Tuesday that taxpayers may need to devote more money to rescue ailing banks. The official said Obama wanted to insert a realistic figure in the budget to reflect that possibility.

"We hope this is not necessary," the official said.

The $750 billion in potential bailout funds would be used to acquire stock holdings in banks in dire need of capital infusions. The funds would likely purchase common stock in a process that would reduce debt loads on bank balance sheets and provide the means to re-enter the loan market. As with the TARP funds, the actual cost to taxpayers will be less than the $750 billion subsidy figure the White House will place in its budget.

The White House and the Congressional Budget Office (CBO) both count funds used for capital subsidies at one-third their actual cost. In other words, to generate $750 billion in bailout subsidies, taxpayers will have to provide $250 billion in direct funds. Under this accounting, $250 billion in tax dollars supports $750 billion in bailout subsidies. For example, the original TARP allocation of $700 billion is scored by the White House and the CBO as a direct taxpayer allocation of $234 billion

OTHER BUDGET HIGHLIGHTS:

The Bush tax cuts expire on schedule at the end of 2010. The higher tax rates will take affect in 2011 and, with the exception to changes in withholding, will be most apparent when taxpayers file their 2011 tax returns in the spring of 2012. The administration has identified some preliminary savings it will ask Congress to approve.

* Phase out of direct payments to farms (mainly corporate ones) with sales revenue of more than $500,000 per year. This two-year phase out of payments, which go to 25 percent of all farms receiving direct payments, is projected to save $9.8 billion over 10 years. It will also ask Congress to abolish payments for the storage of cotton, generating a projected 10-year savings of $570 million.

* Eliminate the tiny Federal Mentoring Program, an initiative started in the second Bush presidency that costs $49 million a year. The administration says this program was added to more than 100 other youth-oriented programs at 13 different agencies. The 10-year savings is projected to $500 million.

* Eliminate a small tax cut known as the "Advance" Earned Income Tax Credit. Projected 10-year savings is $880 million.

* Require investment managers to pay a 35 percent tax rate — instead of the current 15 percent rate — on their earned income. This is known as a "carried-interest" loophole because fund managers or investment managers typically pay income tax rates of 35 percent on income but only 15 percent — the current capital gains tax rate – on a portion of the fund’s annual profits (upwards of 20 percent).

* The administration will seek an additional $300 million to hire additional IRS agents to police and collect an estimated $350 billion in uncollected taxes. It will also seek "legislative and enforcement measures to reduce tax evasion and avoidance," including steps to "limit U.S. corporations’ ability to deduct currently expenses allocable to deferred foreign earnings." Translated, the administration will try to crack down on offshore tax shelters used by corporations and individuals to shield income earned in the U.S. from the IRS.

* The president will seek significant savings from Pentagon procurement. No details or cost savings were specified but are expected Thursday when Defense Secretary Robert Gates briefs reporters on the overall defense budget.

 

 

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