Changes

===2010 Budget===

===2010 Budget===

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>

Congress by party line votes in late April passed the  budget Obama had proposed in late February. It calls for $3.4 trillion in new spending, not vcounting the $787 billion in stimuls spending approved in Febuary, nor the trillions in loan guarantees to banks.  The new budget allocates $1.2 trillion for defense, and an additional $130 billion for the wars in Afghanistan and Iraq. Nondefense spending wwill increase by 8% or $40 billion. The budget will allow the Obama health plan--which has not been written--to move through Congress on a fast track without risk of filibuster. The Bush tax cuts are extended, and some new cuts added for lower income Americans. However the federwal income tax on individuals over $200,000 will rise from 35% to 39.6%.  

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 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>