President Obama is proposing a 10-year budget he claims stabilizes the federal deficit, instead focusing on supposed income inequality while adding nearly $6 trillion to the debt. Adding $4 trillion for the 2016 fiscal year, his plan will raise taxes on corporations and on the rich.
It increases discretionary spending by $74 billion over what sequestration allows.
Along with a 19-percent minimum tax rate on American corporate profits that are kept overseas, he wants a one-time 14-percent tax rate for companies that bring profits home from overseas. Much of the taxes raised are to go towards funding infrastructure, like roads, bridges, airports, light rail and other public transportation systems.
Many are recalling how well those ‘shovel ready projects’ have worked out for the American worker since 2009.
Meanwhile Obama is now calling for a business income tax overhaul that lowers the corporate tax rate from 35 percent to 28 percent, and 25 percent for manufacturers. He also is proposing $105 million for “trade adjustment assistance,” and to aid to workers dislocated by free trade deals.
This so-called aid includes child care credits of up to $3,000 per child, increasing Head Start programs, creating universal preschool for all, investing in evidence-based home visiting, and spending $3 billion on science, technology, engineering, and math (STEM) education.
He also laid out the price for two ‘free’ years of ‘community college. In the first year it will cost $41 million, but will climb to $951 million by 2017 and $2.4 billion by 2018. Unfortunately, only 18 percent of students complete their two-year degree within three years.
Finally, the president’s plan includes an increase in the capital gains rate on couples making more than $500,000 per year and requiring estates to pay capital gains taxes on securities at the time they’re inherited. He also wants to impose a fee on the roughly 100 U.S. financial companies with assets of more than $50 billion.
The best thing about Obama’s budget plan is that he released on time this year.