Changes

===2010 Budget===

===2010 Budget===

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 counting 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 will 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%.   

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 counting the $787 billion in stimulus 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 will 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 federal 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>

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 a 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 reorders national priorities to provide national health care, shift the energy economy away from oil and gas, and raise the federal spending on schools.  

The budget reorders national priorities to provide national health care, shift the energy economy away from oil and gas, and raise the federal spending on schools.