2011 Federal Budget: The Details

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2011 Federal Budget: The Details



President Obama proposed his 2011 budget today
. At $3.8 trillion, it won’t trim deficits in the near future, but will focus on longer-term deficit reduction. We compiled the details below.

$3.8 trillion total budget for fiscal year 2011 (it starts October 1)

Defense
$159 billion for wars in Pakistan and Afghanistan
$43.6 billion for Homeland Security
20% more for Department of Veterans Affairs

Economy
$100 billion to combat unemployment and create jobs
A small business tax credit is in the works to encourage increased wages and hiring

Taxes
$2.6 trillion revenue from taxes and other sources (18% more than 2010)
Tax cuts will remain for those making less than $250,000/year
Other tax cuts will expire December 31
The Making America Work tax cut will remain
Capital gains tax for new small business investments will end
Multinational corporations will pay $122 billion more on earnings they make overseas

Education
$28 billion for the Elementary and Secondary Education Act (that’s 12% more than 2010)
$17 billion more for Pell grants.

More components
A big bank fee
No more subsidies for gas, oil, and goal producers
A 3-year spending freeze
Slashing or paring down 120 government programs (including the Army Corps of Engineers, 27 education programs, NASA, and more)

According to the Wall Street Journal,
Mr. Obama plans to rely on a new debt commission, created by executive order, to come up with recommendations on how to meet his promise to bring the figure down to the equivalent of 3% of GDP by 2015, according to budget analysts briefed on the proposal.

(Other information comes from the Philadelphia Inquirer.)

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