Budget Basics
I don't know about you, but the word "budget" makes me make a face. Not a pretty face.
I understand it's necessary. Believe me! We live on a serious budget at home, so the thought of "budgeting" is never far from my mind!
But my budget doesn't look like this...
Photo Credit/AFP
And it's certainly not for $3.73 Trillion big ones!!
Here are some basic points from the budget the White House presented to Capitol Hill today.
THE DEFICIT
Obama proposes trimming deficits by $1.1 trillion over 10 years. But, some of those snips could actually lead to deficits in coming years. Right now, projections show the deficit will hit a record high of $1.65 trillion this year, then drop off in 2012 (election year gold!)
NO THANKS ON THOSE RECOMMENDATIONS
The Presidents deficit commission made a bunch of recommendations, including raising the Social Security retirement age, doubling the federal tax on gasoline, scaling back some tax breaks, and reforming Medicare. But none of those cuts are in.
ON THE CHOPPING BLOCK
Some programs face being trimmed or cut all together, including:
- Community Development Block Grants
- A program that helps pay heating bills for low-income families
- Environmental restoration of the Great Lakes
- Some Pentagon spending
SPENDING INCREASES
While the budget does propose cuts to many programs, the following initiatives would get more money:
- Education
- Biomedical research
- Energy efficiency
- High-speed rail
TAXES
- Biggest hike: trimming deductions the wealthy can claim for charitable contributions, mortgage interest, and state and local taxes
- Tax increases for oil, gas and coal producers
- Tax increases for investment managers and U.S.-based multi-national corporations
Here's how this works. Lawmakers will begin debating the budget proposals and priorities as early as tomorrow. Then, they'll have to compromise and pass the budget and send it back to the White House for a signature. The 2012 budget year begins Oct. 1.
*Please note, some of this content is taken from an article by the Associated Press. This is by no means an exhaustive look at the budget, just some quick overview points!