Obama Budget: Suprise! That Small Business Tax Cut on capital gains doesn’t kick in until …2014!!

Good Grief. This was the centerpiece of the last Presidential debate, a broken promise by Team Obama..

Ben Smith:

Obama’s budget plan closes the deficit in part by postponing a promised tax cut well into his second term. (MiM here: getting ahead of yourself there Ben!)

The focus on tax cuts was central to Obama’s campaign against John McCain, and his surprising strength in polls on the question of taxes.

One of those promised cuts — the second bullet point in his campaign economic planwas a pledge to “eliminate all capital gains taxes on startup and small businesses to encourage innovation and job creation.”

That cut has been deferred, a Republican source notes: The elimination only begins phasing in, according to the budget overview (page 122) in 2014, well into Obama’s second term.

February 26, 2009. Tags: , , , , , , , . Economy, Finance, Music, Obama Administration, Politics, Uncategorized. 1 comment.

Market Update: Averages Drop on Budget Details and FDIC update….

DOW down 90 to 7181, S & P down 13 to 751, NASDAQ down 33 to 1393 man the markets are bouncing everywhere no one knows wth is coming next DOW now down 40-

DOW closes down 89 to 7182 S & P down 12 to 752, NAS down 34 to 1391

urgent-budget-choices-taxes

FDIC UPDATE: FDIC ‘problem list’ is up 50% and includes 252 banks (unnamed) with assets of 159 billion .

The nation’s banks lost $26.2 billion in the last three months of 2008, the first quarterly deficit in 18 years, as the housing and credit crises escalated.

The Federal Deposit Insurance Corp. said Thursday that U.S. banks and thrifts also more than doubled the amount they set aside to cover potential loan losses, to $69.3 billion in the fourth quarter from $32.1 billion a year earlier.

Bair said it was unfortunate that some banks paid dividends in 2008 despite being unprofitable. At a news conference to release bank industry results and trends for the fourth quarter of 2008, she urged all banks to review their dividend policies.

The Office of Thrift Supervision, meanwhile, announced a loss of $3 billion in the fourth quarter and a record $13 billion annual loss for savings and loans last year.

The FDIC now believes U.S. bank failures will cost the deposit insurance fund more than $40 billion over the next four years amid the ravages of rising unemployment and falling home prices that have sent loan defaults soaring.

Budget Details Include (CNBC):

WH budget forecasts 2009 GDP at 1.2%

WH budget forecasts unemployment peaking at 8.1% in 2009

WH budget requests 75.5 billion war cost supplemental for 2009

WH budget estimates FiscalYear 2010 war costs at 130 billion

WH indicates more action to boost financial system ‘likely’, sets aside 250 billion for further bank aid if needed

WH projects deficit will hit 1.75 trillion in FY09; 1.17 trillion in FY10

WH projects 10yr note averaging 2.8% in 2009

Budget creates National Infrastructure Bank

Budget increases defense spending 4% to 533.7 billion, excluding war spending

3.6 trillion in spending in FY10

635 Billion for healthcare

Tax Proposals:

Increase for households making 250k+ (rollback of Bush tax cuts)

Higher taxes for ‘carried interest’, (taxed as income not as capital gain)

Reduce value of some deductions (to me insanely they reduce value of charitable and housing interest deductions just when we need them most, oy!)

That whopping $400 a yr tax cut to ‘Make Work Pay’ is continued (so you can go ahead and buy that cup of coffee every week and get used to it, one a week mind if you like Starbucks!)

And don’t even think about those gas savings, Energy Plans include carbon taxes and Oil is up, they found a way to make energy more expensive even when there is a global recession, way to go!

February 26, 2009. Tags: , , , , , , , , , . Economy, FDIC, Finance, Politics, Uncategorized, Wall St. 1 comment.

Update: GOP Rep. turns down the WH….Monday: ‘Fiscal Responsibility’ Summit at WH…Social Security ‘reform’ and UHC on the menu….

The RSVPs aren’t all in the affirmative, not everyone wants their fingerprints on what Team Obama will no doubt later refer to as bipartisan work on the budget…
From Glen Thrush:

New York Republican Rep. John McHugh, the ranking member of the House Armed Services Committee, has turned down Barack Obama’s invite to Monday’s fiscal responsibility summit, his office tells my colleague Alex Isenstadt.

The New York congressman emerged as a tough critic of the economic stimulus package passed by Congress last week.

What will Americans lose at the Summit?? Social Security benefits, retirement age? Health Care Treatment Choices?? Place your bets and takes yer chances!!

What will Americans lose at the Summit?? Social Security benefits, retirement age? Health Care Treatment Choices?? Place your bets and takes yer chances!!

Ain’t it grand?! After spending more money in less time than anyone in history, they hold a ‘Summit’ on Fiscal Responsibility!! Summit to sound like they climbed a mountain and are having a global meeting I guess, even though this isn’t the G20..It’s a bunch of ‘propeller heads’ who plan to tell US, the PEOPLE, how to live responsibly on what THEY give BACK after they TAKE our money …GRRRRRRRR…Stay away from my Social Security you ‘pragmatic’ number crunching Team of Zeroes…

Via Ben Smith:

The event is to include about 100 guests, and will begin with addresses by President Obama and Vice President Biden. It’s set to include members of both houses of Congress from both parties.

The opening session will be followed by “breakout” sessions of five topics: health, tax policy, Social Security, contracting and procurement, and the budget, each led by senior officials.

The budget director, Peter Orszag, will be leading the health breakout — a policy area on which he’s long focused, and one expected to be front and center in the budget.

Christina Romer and Larry Summers will lead the Social Security session; despite fears on the left, entitlement reform advocate Pete Peterson appears to have no formal role in the gathering. (MiM here no ‘formal’; role but he IS THERE RIGHT??? RIGHT!)

Pete Peterson already has an ad to push his SS ‘reform’ guess HE thinks he has input somehow huh? HOW LONG WILL HE TRY TO KILL SS?!?!?:

CIA director Leon Panetta will be present to — to talk about the budget, however, which he ran in the Clinton years, not about his current portfolio.

Full schedule after the jump.

WHAT: The White House Fiscal Summit

WHEN: Monday, February 23rd, 2009

12:30 PM – Event Call Time

1:00 PM – Program Begins

4:30 PM – Event Concludes

WHERE: The White House

The State Dining Room

*Specific information on arrival gates will be provided shortly.

FORMAT: Approximately 100 guests will gather at the White House to participate in a summit on fiscal issues. The group will be composed of the President and Vice President, Members of Congress, members of the Cabinet and senior Administration officials, and various other experts in the field. The group of Members will be bipartisan and bicameral.

Session 1: The President and Vice President will each deliver remarks in an opening session in the State Dining Room. Open press.

Session 2: Breakout discussion groups led by members of the Cabinet and senior Administration officials on key fiscal issues. Pooled press.

Session 3: Plenary discussion led by the President regarding results of the five breakout groups. Pooled press.

Breakout sessions.

Health: Orszag, Melody Barnes, Sec. Shinseki

Tax: Geithner, Volcker

Social Security: Romer, Summers

Contracting & Procurement: LaHood, Napolitano, Bill Lynn

Budget: Nabors, Panetta

February 20, 2009. Tags: , , , , , , , , . Cabinet, Economy, Finance, Healthcare, Obama Administration, Politics, Wall St. 3 comments.

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