The latter years of the 10 yr budget window contemplate a deficit of
3% of GDP, which is a welcome flight from the usual hysteria to
reasonability.  It's more a political statement, since the 'out-years'
of budgets don't mean much.  The stuff to watch are the measures that
are permanent, which would include the scheduled tax increases.

I forgot to mention they ding the oil companies pretty well on the tax side too.



On Wed, Mar 4, 2009 at 4:07 PM, raghu <[email protected]> wrote:
> On Wed, Mar 4, 2009 at 3:39 AM, Max B. Sawicky <[email protected]> wrote:
>> I've started looking at the O-budget numbers, which are pretty
>> remarkable overall.  I mean the humongous jump in non-defense
>> spending.  Some kool stuff on the tax side too (cap and trade,
>> tax on hedge funds, cap deductions at 28%).  It makes me think
>> of the LBJ mix -- big growth in domestic spending, and sliding
>> into a potential foreign policy morass (in Afghanistan).
>
>
>
> I thought there was a lot to like in the Obama budget: elimination of
> Bush tax cuts including I assume reinstating the estate tax; reduced
> war spending; removing subsidies for pharma companies; removing the
> hedge-fund/private equity tax loophole; tax hikes for the wealthy; tax
> cuts for the poor; some health-care spending etc. Unlike the financial
> bailout which sounds entirely awful and the stimulus package which is
> only so-so.
>
> Sure the budget makes exaggerated noises about deficit reduction, but
> it is coming from soaking the rich and auctioning carbon credits -
> which in principle would leave a lot of fiscal ammunition in reserve
> for progressive policies in future.
> -raghu.
>
> --
> "I have the heart of a child... in a jar on my desk." - Stephen King
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