Barack Obama Budget For Us Economy 2009 Details
Worldnews Thursday, February 26, 2009Obama's first budget, which will top $3 trillion, predicts the deficit for this year will soar to a whopping $1.75 trillion, according to administration officials who spoke on condition of anonymity before the public unveiling of the budget Thursday. The huge deficit reflects the massive spending being undertaken to battle a severe recession and the worst financial crisis in seven decades.
As part of the effort to end the financial crisis, the administration will propose boosting the deficit by an additional $250 billion this year, enough to support as much as $750 billion in increased spending under the government's financial rescue program. That would more than double the $700 billion bailout effort passed by Congress last October.
US President Barack Obama is sending Congress a "hard choices" budget that would boost taxes on the wealthy and curtail Medicare payments to insurance companies and hospitals to make way for a $634 billion down payment on universal health care.
Max Baucus, D-Mont., chairman of the Senate Finance Committee, called Obama's proposal to tax the wealthy to finance health care reform a starting point. But he wants to also examine taxing some of health insurance benefits provided by employers — an idea rejected by Obama in last year's presidential campaign.
Obama's promise to phase out direct payments to farming operations with revenues above $500,000 a year is sure to cause concerns among rural Democrats.
Even after all those difficult choices, cutting about $2 trillion from the budget over 10 years, Obama's budget still would feature huge deficits.
The $1.75 trillion deficit projected for this year would represent 12.3 per cent of the gross domestic product, double the previous post-war record of 6 per cent in 1983, when Ronald Reagan was president, and the highest level since the deficit totaled 21.5 per cent of GDP in 1945, at the end of World War II.
At $533 billion, the deficit in 2013 would be about 3 per cent of the size of the economy.
Source : NDTV Profit
As part of the effort to end the financial crisis, the administration will propose boosting the deficit by an additional $250 billion this year, enough to support as much as $750 billion in increased spending under the government's financial rescue program. That would more than double the $700 billion bailout effort passed by Congress last October.
US President Barack Obama is sending Congress a "hard choices" budget that would boost taxes on the wealthy and curtail Medicare payments to insurance companies and hospitals to make way for a $634 billion down payment on universal health care.
Max Baucus, D-Mont., chairman of the Senate Finance Committee, called Obama's proposal to tax the wealthy to finance health care reform a starting point. But he wants to also examine taxing some of health insurance benefits provided by employers — an idea rejected by Obama in last year's presidential campaign.
Obama's promise to phase out direct payments to farming operations with revenues above $500,000 a year is sure to cause concerns among rural Democrats.
Even after all those difficult choices, cutting about $2 trillion from the budget over 10 years, Obama's budget still would feature huge deficits.
The $1.75 trillion deficit projected for this year would represent 12.3 per cent of the gross domestic product, double the previous post-war record of 6 per cent in 1983, when Ronald Reagan was president, and the highest level since the deficit totaled 21.5 per cent of GDP in 1945, at the end of World War II.
At $533 billion, the deficit in 2013 would be about 3 per cent of the size of the economy.
Source : NDTV Profit
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Posted by Raj
on Thursday, February 26, 2009.
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