On Sunday it was announced that President Obama on Monday will send a $4 trillion dollar budget to Congress, which will include a questionable $478 billion public works program for highway, bridge and transit upgrades. According to White House officials, the funding for the program will come from a one-time 14% transition tax on the up to $2 trillion dollars of untaxed foreign earnings that American companies have accumulated overseas. The tax on accumulated foreign profits would be set at 14 percent, significantly lower than the current top corporate rate of 35 percent.
The budget plan begins early October will also include proposals he highlighted during the State of the Union in January. The spending will be supported by $3.5 trillion dollars in revenue according to the Associated Press. The budget proposal will include a handful of spending programs and tax increases that Republicans have labeled as “nonstarters.” Obama’s budget does not include any changes to Social Security and Medicare. Obama’s public works proposal would provide upgrades to the country’s highways, bridges, and public transportation systems. The White House is also proposing an overhaul to corporate taxes by stopping certain tax breaks and lowering tax rates, a tough challenge that both President Obama and Republicans have agreed to tackle. Continue reading at Examiner.com
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