Legal Commentary

Obama Releases $3.55 Trillion Budget

By Jeralyn

President Obama's 2010 budget was released today. It amounts to $3.55 trillion and, according to the Washington Post, will push the deficit to $1.75 trillion.

Included is a $634 billion health care fund. How will it be paid for? In large part, by increasing taxes on those earning more than $250,000. [More...]

The budget proposes to raise taxes on couples earning more than $250,000 a year, generating $636 billion over the next decade. To do so, Obama would raise the top two marginal income tax rates to 39.6 percent and 36 percent, limit itemized tax deductions and increase taxes on capital gains to 20 percent from the current 15 percent.

The spending plan also proposes to raise taxes on venture capitalists, executives of private equity firms and other investment partnerships by $24 billion by eliminating the so- called carried interest tax loophole. The provision currently allows investment managers to pay 15 percent tax rates on their compensation rather than the usual income tax rates.

Obama also would raise $210 billion by cracking down on offshore tax havens and another $5 billion by clamping down on business transactions that are solely designed to reduce companies’ tax bills. He would also generate $61 billion by ending a tax accounting technique called “last-in, first-out” or LIFO that primarily benefits oil and gas companies but is widely used across industries.

How did Wall Street react? Drug company stocks fell big.

For those of you with some economic knowledge, is the budget a good deal or not?

Full post as published by TalkLeft on February 26, 2009 (boomark / email).