>From AARP

Here are the budget highlights: 

TAX CUTS
Obama would make the stimulus package’s temporary tax
cutâ€"up to $800 for working familiesâ€"permanent. The money
will offset payroll taxes on the first $6,450 in income. About 95
percent of workers would benefit. The budget document describes it as
just the beginning of promised middle-class tax relief. 

TAX HIKES
Obama would raise taxes for those making over $250,000 and essentially
retain the 2001 and 2003 middle-class tax cuts for those making less. He
proposes raising the current 33 percent and 35 percent tax rates for the
2.6 million richest Americans to 36 percent and 39.6 percent.

For those high-income families who itemize their deductions, he proposes
capping deductionsâ€"including those for mortgage interest,
charitable giving and investment expenseâ€"at 28 percent of gross
income. 
He would halt the scheduled repeal of the estate tax and impose a 45
percent tax on a married couple’s estate over $7 million. 

HEALTH CARE
The Obama budget sets aside a $634 billion down payment to transform the
nation’s health care system. He leaves details of the reforms to
Congress and future negotiations. But he would finance it in part by
imposing higher taxes on richer Americans; by forcing the private
Medicare Advantage insurance companies to compete for contracts; by
charging a higher premium for high-income participants in the Medicare
drug program; and by reducing Medicaid rebates to drugmakers. The plan
also provides an added $340 million as incentives for doctors, nurses
and dentists working in underserved regions of the country. 

CANCER RESEARCH
Obama would raise funding levels for the National Institutes of Health
for cancer research, adding $6 billion as part of a plan to double
cancer research. The money will go toward developing diagnostics and
treatments. 

SOCIAL SECURITY
Obama would increase Social Security funding by 10 percentâ€"up $1.1
billion to $11.6 billionâ€"to expedite approval of benefits,
particularly for people with disabilities. Social Security officials
wade through 4.2 million applications for benefits each year from
retirees, survivors and Medicare patients and another 2.6 million
disability claims. There is currently a more than two-year backlog for
disability claims. 

VETERANS HEALTH CARE
The Veterans Affairs Department would get a $25 billion increase over
the next five years and much of it would go toward health care. The
extra money would allow another 5.5 million veterans to get care.
Non-disabled veterans with modest incomes, for instance, will be allowed
into the VA health care system for the first time in more than six
years. 

NUTRITION
Obama would set up a pilot program to help get more poor older Americans
involved in the Supplemental Nutrition Assistance Program. The budget
says older Americans are among the “most vulnerable and
hardest-to-reach† people who are eligible for the aid. Obama
also would increase funding for food banks and other feeding programs
that help the poor, including the SNAP program. 

FOOD SAFETY
The blueprint increases the Food and Drug Administration budget by $1
billion to protect the nation’s food supply. 

WORKPLACE CHANGES
The Obama budget proposes employers who do not provide retirement
benefits be required to automatically enroll employees in a
“direct-deposit† IRA account. This would increase the
participation rate from 15 to 80 percent for low- and middle-income
workers, the budget document claimed.  

MASS TRANSIT
Public transit would get a boost, including a $5 billion installment on
Obama’s campaign promise to build a national network of
high-speed passenger trains. Those funds, to spread out over five years,
are on top of the $8 billion for high-speed trains in the recently
enacted economic stimulus bill.


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