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President Releases FY 2010 Budget Recommendations

1 min readBy: Gerald Prante, Joseph Bishop-Henchman

The White House released its proposed Fiscal Year 2010 budget this morning. Take a look at the budget on the Office of Management and Budget website. (View the summary tables PDF here.)

The Office of Management and Budget estimates that FY 2009 (the current fiscal year) will involve $2.19 trillion in revenues and $3.94 trillion in outlays, with a $1.75 trillion deficit. That equates to 12.3% of GDP.

Some other notes:

  • “Climate Revenues” (cap and trade) of about $80 billion per year beginning FY 2012
  • $250 billion placeholder in FY 2009 for “additional financial stabilization efforts”
  • Making Work Pay Credit made permanent at about $64 billion per year
  • Expand EITC at about $4 billion per year
  • Expand refundability of Child Tax CreditA tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly.
  • Provide American Opportunity TaxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Credit
  • Reinstate Superfund taxes
  • Repeal of some tax benefits to oil companies
  • Reinstate 36% and 39.6% brackets for singles over $200k and married over $250k starting FY 2011
  • 20% cap gains and dividends rate
  • Maintain estate taxAn estate tax is imposed on the net value of an individual’s taxable estate, after any exclusions or credits, at the time of death. The tax is paid by the estate itself before assets are distributed to heirs. at 2009 level
  • Index AMT for inflationInflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. The same paycheck covers less goods, services, and bills. It is sometimes referred to as a “hidden tax,” as it leaves taxpayers less well-off due to higher costs and “bracket creep,” while increasing the government’s spending power. from 2009 level
  • “National Infrastructure Bank”—$5 billion per year beginning FY 2010
  • “Seigniorage”—the profit from the production of coins—is expected to be negative $1 billion a year
  • Puts a limit on itemized deductions—taxpayers in top brackets are treated as if they are in the 28% bracket for purposes of the deductions