Obama's Proposed Budget: More Taxing, More Spending
January 30, 2015
The Heritage Foundation has a new report that delves into President Obama's proposed 2015 budget, which calls for $1.2 trillion in new taxes and $1 trillion in new spending. What's wrong with the budget? Heritage Foundation Research Fellow Curtis Dubay points out a few problems with the presidents' tax proposals:
- The new tax hikes would put tax revenue at 19.9 percent of GDP, which is nearly a record. Dubay notes that the new revenue will go toward making the federal government even bigger.
- The biggest tax increase would cap itemized deductions for high earners.
- The president wants to raise the death tax, which was already increased last year. Dubay says the tax hurts entrepreneurship and can force family businesses to liquidate their assets.
These are just a few of the president's tax proposals. Moreover, Senior Policy Analyst Rachel Greszler says the president's proposal uses misleading numbers, as the Office of Management and Budget assumes GDP growth that is higher than that projected by the CBO as well as an unemployment rate that is lower than that projected by the CBO. Such assumptions inflate government revenues and miscalculate real government spending.
Source: "President Obama's 2015 Budget: How Government Expansion Will Limit Opportunity, Slow Economic Growth, and Erode Financial and National Security," Heritage Foundation, April 14, 2015.
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