Sunday, February 26, 2012

The budget deficit will be below 1 trillion in 2013

Obama has proposed a budget which projects $901 billion deficit in 2013. This would be the first yearly budget deficit to be under 1 trillion dollars in over four years. The budget includes investments in infrastructure, letting the bush tax cuts expire for the wealthy, and a 30% alternative minimum tax on people making more than 1 million dollars a year. However, because of partisan division in D.C., it is unlikely this bill will become a law.
       Although I believe that this proposal is okay, there is still a lot of room for improvement. For example there is very little significant entitlement reform in the budget. I also think that Obama might be proposing this budget for political reasons. However, this is not an excuse for the Republicans to not propose their own reasonable budget. The budgets that the Republicans have proposed either sacrifice too many services which would lead to slower economic growth, or cut even less from the deficit then Obama's does.

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