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Originally posted by stander
Obama's proposal to stimulate the economy includes tax cuts of up to $300 billion — including $500 for most individuals and $1,000 for couples if one spouse is employed
This is not going to help and another rescue package will follow. The comedy will continue and before Obama's first term is over, They the People will have pocketed $700 billion.
President-elect Barack Obama confirmed to CNBC Thursday that he plans to lay out a roughly $775 billion economic stimulus plan but indicated that the amount could grow once it gets taken up by Congress.
"We've seen ranges from $800 (billion) to $1.3 trillion," he said in an exclusive interview with CNBC's chief Washington correspondent John Harwood. "And our attitude was that given the legislative process, if we start towards the low end of that, we'll see how it develops."
Noting that the Congressional Budget Office had just estimated he would inherit a $1.2 trillion federal deficit for fiscal 2009, Obama promised to cut unnecessary spending.
President-elect Barack Obama braced the American people on Tuesday for what could be an extremely rough road ahead economically. After meeting with a group of economic advisors in Washington, Obama warned that $1 trillion deficits could last for years to come.
Indeed, current projects show the government already running a $408 billion shortfall for the first three months of fiscal year 2009. That means the budget deficit for the current fiscal year will likely shatter last year’s record of $455 billion. That is without the cost of the projected $800 billion stimulus package proposed by the Obama administration.
Some experts are predicting that this fiscal year’s deficit will be in the range of $1.4 trillion to $2 trillion. The former would represent 10 percent of the entire U.S. economy, decimating the previous record of six percent of gross domestic product in 1983.
With huge revenue shortfalls caused by increased unemployment, and less corporate and business taxes coupled with increased government spending on social programs and huge stimulus bills, budget deficits are likely to continue to skyrocket.
Running a huge deficit will require the U.S. to borrow more money to function, mainly from foreign governments like China and Japan. This further makes America beholden to our foreign creditors and arms those nations with the money that they in turn use to buy the nation’s companies off one-by-one
Perhaps the most worrisome factor for economists is the fact that huge budget deficits combined with unfunded social obligations such as Medicare and Social Security could eventually bankrupt the nation.
Democrats criticize Obama's proposed tax cuts