"This budget is a nervous breakdown on paper."Actually, none of them. This quote came from the head of the Congressional Black Caucus Rep. Emanuel Cleaver (D-MO). The rest of the quote:
"We're still in a recession, we're still struggling. Unemployment is still too high."Wait a minute, he's not criticizing the budget because there's too much spending, he's criticizing it because there's not enough. After three years in office Obama has solved exactly NONE of the problems in the U.S. economy and yet you know Cleaver will be at the front of the reelect Obama parade.
So, what kind of tax cuts can we expect in this budget to stimulate the economy? Pretty much ZERO (from James Pethokoukis):
Here's pretty much all you need to know about Obamanomics: In 2011, the Obama White House suggested raising the top dividend tax rate to 20 percent from 15 percent. Keeping the dividend rate at a relatively low level, the White House said, "reduces the tax bias against equity investment and promotes a more efficient allocation of capital." Makes sense, right? Basic economics.There are a couple of budget cuts, but Rush Limbaugh pointed out one that's not likely to be a hit with Obama voters - going to a 5-day mail delivery schedule. It wouldn't bother me, but then I don't get a regular check from the government that might be delayed a couple of days if there's no Saturday delivery. We can't have that.
Yet in his brand-new, 2013 budget, Obama calls for taxing dividends as ordinary income, essentially raising the top rate all the way to 39.6 percent. And then when you tack on the 3.8 percentage point Obamacare surtax -- and an additional 1.2 percentage point itemized deduction phase-out for high-end taxpayers -- the rate rises to 44.6 percent.
So apparently Obama is now in favor of a greater bias against equity investment (and in favor of debt) and promoting less efficient allocation of capital. And this helps create an economy "built to last" in some way?
Of course, it doesn't. Not at all. More like "built to fail."
The whole budget exercise is silly because the Harry Reid run Democrat Senate hasn't passed a budget in over 1,000 days and won't pass this one either. Obama went through the motions because by law he's supposed to (though he didn't get it done in time), but the Dems don't want to actually put their name on a budget so they'll try and pass some stopgap measures to keep the government running... at least until the election.