Another day, another $3.8 trillion

On February 1, 2010, the White House released its proposed $3.8 trillion budget—which is great except for the fact that it results in a record $1.6 trillion deficit. There are plans to reduce this spreadcongress is being generous by reducing its discretionary spending from $1.4 trillion to $1.38 trillion (about as much of a cut back as saving money on a new car by merely opting for one less cup holder). Additionally, the current administration plans on allowing the Bush tax cuts to expire for households earning more than $250,000, and move that will increase the top two tax brackets from 33 percent and 35 percent to 365 and 39.6 percent, respectively. It will also increase capital gains rates from 15 to 20 percent.

Additional articles