The markets are still a bit shell shocked from Obama Week # 5. See Markets Aren’t Easily Charmed! The investors are not impressed so far!
What else do you expect from back to back to back trillion dollar deficits?
"The first point to understand is the sheer magnitude of federal spending built into this proposal.
As the nearby chart shows, federal outlays will soar in fiscal 2009 to $4 trillion, or 27.7% of GDP, from $3 trillion or 21% of GDP in 2008, and 20% in 2007.
This is higher as a share of the economy than any year since 1945, when the country was still mobilized for World War II.
It is more spending by far than during the Vietnam War, or during the recessions of 1974-75 or 1981-82."
Beyond that, the federal deficit is shocking:
"These columns focus on spending, rather than deficits, because Milton Friedman taught us that spending represents the real future burden on taxpayers.
Nonetheless, the 2009 budget deficit is estimated to be an eye-popping 12.7% of GDP, which once again dwarfs anything we've seen in the postwar era.
The White House blueprint predicts that this will fall back down to 3.5% as soon as 2012, but this is based on assumptions about Washington that aren't going to happen."
I'm sorry. This is irresponsible, to say the least.
Of course, "the yes we can" screamers will blame it on pres. Bush!
What's new about that? Everything is Pres. Bush's fault!
However, the public, and specially the people who will pay for Pres Obama's liberal fantasy land, will not.
Get ready for a lot of tax increases, specially if you are a small business owner, i.e. the job creators:
"President Obama's budget proposes $989 billion in new taxes over the course of the next 10 years, starting fiscal year 2011, most of which are tax increases on individuals.
1) On people making more than $250,000.
$338 billion - Bush tax cuts expire
$179 billlion - eliminate itemized deduction
$118 billion - capital gains tax hike
Total: $636 billion/10 years
2) Businesses:
$17 billion - Reinstate Superfund taxes
$24 billion - tax carried-interest as income
$5 billion - codify "economic substance doctrine"
$61 billion - repeal LIFO
$210 billion - international enforcement, reform deferral, other tax reform
$4 billion - information reporting for rental payments
$5.3 billion - excise tax on Gulf of Mexico oil and gas
$3.4 billion - repeal expensing of tangible drilling costs
$62 million - repeal deduction for tertiary injectants
$49 million - repeal passive loss exception for working interests in oil and natural gas properties
$13 billion - repeal manufacturing tax deduction for oil and natural gas companies
$1 billion - increase to 7 years geological and geophysical amortization period for independent producers
$882 million - eliminate advanced earned income tax credit
Total: $353 billion/10 years" (JTapper)
Again, only the rich will pay! Repeat: Only the "rich will pay"!
Wonder how many independents voted for Obama and expected him to triple Bush's deficits relative to GDP?
