President Barack Obama presents his economic plan for America

President Barack Obama on Monday laid out his proposed 2013 budget with a focus on spending on growth and taxing the rich. This spending proposal seems to be aimed at the voters as it brings into focus the major theme of this re-election campaign of “Economic Fairness”. The Republicans on the campaign trail and the Congress have criticized this proposal for not doing enough to bring down the deficit or curb spending.

Though this budget proposal is expected to go nowhere in the divided Congress just as the spending proposal President Obama presented last year, it is a way for the President to draw the public’s mind away from the terrible state of the economy towards a more hopeful future where most of the spending focuses on projects to rebuild America and job creation. This budget proposes a minimum 30% tax on Millionaires, and increasing the taxes on dividends to the level of their income tax instead of the current 15%. He is also proposing that the Bush era tax breaks be allowed to expire, which would result in some people being taxed at as much as 40%. The $3.8 trillion budget calls for more than $800 billion to be used for job creation and infrastructure investment on projects such as building roads, railways and schools and sets aside money to hire more firefighters, police officers and teachers.  He proposes cutting spending on defense by$487 billion.

Tax Lax in Capitol Hill

Presidential Candidates Mitt Romney and Newt Gingrich have been in the news recently for their tax return details. More information shows that many Capitol Hill employees have been neglecting paying their taxes.  In 2008 alone, 447 House employees and 231 Senate workers haven’t paid their taxes. This year’s data from the IRS confirms that there are about $10million in unpaid taxes just from 3 percent of the Senate staffers and 4 percent of the House staffers.

 

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