Highlights Of Democratic Budget Plan | Politics.MyNC.com

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Highlights Of Democratic Budget Plan

Posted on 28 April 2009 | Jennifer Wig

Highlights Of Democratic Budget Plan From AP

Highlights of the nonbinding Democratic budget blueprint for the 2010 budget year starting Oct. 1.

Spending – Calls for $3.4 trillion in new spending, including $1.2 trillion for defense and domestic programs funded through appropriations bills, and $130 billion for the wars in Iraq and Afghanistan. Nondefense appropriations would receive a $40 billion, 8 percent boost. Benefit programs such as Medicare and Social Security, as well as interest payments on the $11.2 trillion national debt, account for most of the rest.

Health care – Permits Obama’s health care reform initiative to advance under fast-track rules that block GOP filibusters in the Senate.

Taxes – Endorses extending middle-class tax cuts passed in 2001 and 2003 under President George W. Bush. They include: a 10 percent tax bracket, lowered rates on income and investments, relief from the “marriage penalty,” education tax breaks and the child tax credit. Provides a three-year “patch” of the alternative minimum tax so more than 20 million taxpayers don’t get hit with tax increases averaging $2,000 a year. Increases the top income tax rate from 35 percent to 39.6 percent for individuals making more than $200,000 per year. Allows Obama’s $400 “Making Work Pay” tax credit for most workers to expire at the end of next year.

Deficits – Projects deficits of $1.7 trillion in 2009, $1.2 trillion in 2010, $916 billion in 2011, $620 billion in 2012, $581 billion in 2013 and $523 billion in 2014.

Debt – Estimates an increase in the national debt to $17 trillion by 2014.

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