Obama's Budget: $4 trillion in spending, a $1.75 trillion deficit, and another $750 billion bank bailout

President Obama's national debt busting first budget projects a $1.75 trillion deficit so Obama can spend nearly $4 trillion in fiscal year 2010 and "creates space" for another $750 billion bank bailout.

The White House will formally release Obama's budget boondoggle overview at 11:00 a.m., but at FoxNews, Major Garrett provides a preview:

Senior administration officials would not disclose a precise figure for the entire budget, but said it would likely fall between $3.8 trillion and $4 billion for the fiscal year beginning Oct. 1.

As we reported yesterday, the Obama budget will also set aside a $634 billion health care "reserve fund" as a down payment of the estimated $1trillion cost of Obama's so-called "health care reform."

OTHER BUDGET HIGHLIGHTS:

Bush tax cuts allowed to expire at the end of 2010.

Phase out of direct payments to farms with sales revenue of more than $500,000 per year - projected to save $9.8 billion over 10 years.

Abolish payments for the storage of cotton - projected to save $570 million over 10 years.

Eliminate the President Bush's Federal Mentoring Program - projected to save $500 million

Eliminate the "Advance" Earned Income Tax Credit - projected to save $880 million over 10 years.

Increase investment managers tax rate 135%, from 15% to 35 percent.

Hire additional IRS agents to collect more taxes.

Significant undisclosed savings from Pentagon procurement - Obama code for defense cuts.

So Obama is going to spend $4 trillion, run a $1.75 trillion deficit and offer the banks another $750 billion bailout but Obama can only find a measly $1.164 billion in annual savings in the entire Federal budget, not counting his "significant undisclosed" defense cuts.

Like Obama said, he won. It's becoming clear that means we lose. 

Comments

[jeff]

In this economic environment, I’m not sure how it can help….

In the mean time, I just came across a very helpful website on the current economic downturn and employment:

http://www.recessioninfocenter.com

http://www.recessioninfocenter.com/2008_tax_tips_for_recession.html

[Dave]

This whole stimulus bill that was pushed through, and all of this new spending is ridicules. It does nothing to create long term jobs. These are all short term projects that they want to do. What are all of these people working on these projects going to do once everything is fixed? They will be jobless without any where to turn and the economy will go back down. If we are going to throw money around, lets throw some into creating jobs outside of the government. One job resource that could use a jolt of life is our manufacturing industry. I was reading articles over at americanboom.com about how much of this problem could have been avoided if we had not outsourced all of our manufacturing to China. We need to stop relying on the government to bail us out and start bailing each other out. If we support companies that employ Americans then maybe they will not move to China.