Budget Projects Rising Debt Despite Spending Cuts; GOP Decries Deficits.
President Barack Obama’s $3.8 trillion budget for the coming fiscal year raises taxes on businesses and upper-income households by $2 trillion over 10 years and cuts spending on programs with considerable political support, but will still leave the nation with $8.5 trillion in added debt over the next decade. The budget plan for fiscal 2011 calls for nearly $1 trillion in tax increases on families with income above $250,000 over the next decade—largely by allowing tax cuts from the administration of George W. Bush to expire. But extensions of Bush tax cuts for the middle class, plus new tax cuts in Mr. Obama’s jobs program, would cost the government $284 billion over the coming decade.
By Jonathan Weisman, Feb 1, 2010 WSJ