Here is how much the "nanny state" will cost.
Click to view full screen (Graph from NY Post)
The budget will triple the FY09 deficit of $459 Billion to $1.8 trillion for FY 10: the highest ever in dollar terms - amounting to a 12.3 percent share of the economy, which is the largest since 1945.
Entitlement spending will increase from $1.6 Trillion to $2.5 Trillion; a 73% increase! More entitlements = more socialism = power grab = buying votes with tax payer money!
Currently, if someone in the top bracket makes a gift to charity, for instance, they get a 35 percent write-off. Under Obama's plan, beginning in 2011, they would get a smaller write-off at the 28 percent rate - a change that worries charity groups.
The Bush tax cuts will expire for families earning more than $250,000 a year, which would raise the highest rate from 35 percent to 39.6 percent. (This includes many small business owners; you know the people that actually create jobs. This will have a negative impact on unemployment.)
Obama would also impose a 20 percent capital-gains rate on top earners, up from the current 15 percent.
Taxes on the wealthy would raise $635 billion over 10 years, with most of the funds going to tackle health care, which is sucking up an increasing share of the national budget and household finances.
Corporate tax increases will provide the Fed with nearly $350 billion. (Keep in mind, corporatios do not pay taxes; they pass the cost on to the consumer. So essentially, it's an economic stalemate, but will allow Obama more entitlements.)
The budget forecasts a jump in government spending by 7 points - to 28 percent of the total economy this year.
Indeed, the era of big government is back.
And it sucks.
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