Changes

On Feb. 26 Obama proposed to Congress a $3.6 trillion budget containing a sharp shift toward expanded government activism, tax increases on high income families and businesses that are still profitable, with tax increases targeted at businessmen he says profited from "an era of profound irresponsibility."<ref>[http://www.forbes.com/2009/02/27/obama-budget-small-business-personal-finance_obama_budget.html mixed evaluation from conservative economist]</ref> The Obama budget is "breathtaking in scope" and will consume a record 27.7 percent of the GDP. <ref>http://foxforum.blogs.foxnews.com/2009/03/03/kerpen_obama_budget/</ref> Under the plan, no income tax rate decreases, and rates on upper-income people increase. The plan will likely lead to a decrease in charitable giving. <ref>http://blogs.wsj.com/wallet/2009/03/02/obama-tax-proposals-charitable-giving/</ref>

On Feb. 26 Obama proposed to Congress a $3.6 trillion budget containing a sharp shift toward expanded government activism, tax increases on high income families and businesses that are still profitable, with tax increases targeted at businessmen he says profited from "an era of profound irresponsibility."<ref>[http://www.forbes.com/2009/02/27/obama-budget-small-business-personal-finance_obama_budget.html mixed evaluation from conservative economist]</ref> The Obama budget is "breathtaking in scope" and will consume a record 27.7 percent of the GDP. <ref>http://foxforum.blogs.foxnews.com/2009/03/03/kerpen_obama_budget/</ref> Under the plan, no income tax rate decreases, and rates on upper-income people increase. The plan will likely lead to a decrease in charitable giving. <ref>http://blogs.wsj.com/wallet/2009/03/02/obama-tax-proposals-charitable-giving/</ref>

Obama's tax plan follows through on his promise to "spread the wealth". The Tax Foundation says that 44% of all tax filers will have no tax liability and most of those will get a check from the government. The Wall Street Journal noted about Obama's plan that, "Once upon a time we called this 'welfare'". <ref>http://online.wsj.com/article/SB122385651698727257.html</ref>

The Tax Foundation says that 44% of all tax filers will have no tax liability and most of those will get a check from the government especially from the Earned Income Tax Credit (EITC)<ref>EITC is a conservative idea first proposed by Milton Friedman, enacted under Republican presidents Ford and Reagan.</ref> and credits for college tuition and child care. The ''Wall Street Journal'' noted about Obama's plan that, "Once upon a time we called this 'welfare'". <ref>http://online.wsj.com/article/SB122385651698727257.html</ref>

The Budget assumes federal deficit of $1.75 trillion for 2009, or 12.3% of GDP--the highest deficit in percentage terms since World War II. By 2013, the hypothetical deficit will drop to $533 billion but then will begin to climb again. The budget includes an additional $250 billion for more rescues of the financial markets by purchasing toxic assets on the banking sector's books.

The Budget assumes federal deficit of $1.75 trillion for 2009, or 12.3% of GDP--the highest deficit in percentage terms since World War II. By 2013, the hypothetical deficit will drop to $533 billion but then will begin to climb again. The budget includes an additional $250 billion for more rescues of the financial markets by purchasing toxic assets on the banking sector's books.