http://www.nytimes.com/2015/02/02/us/obama-budget-to-seek-to-stabilize-deficit-and-address-income-inequality.html?hp&action=click&pgtype=Homepage&module=first-column-region®ion=top-news&WT.nav=top-news&_r=0
President Obama new budget for the next 10 years will be proposed on Monday, Feb 2nd 2015. This new budget, although does address stabilizing the current deficit, it focuses more on solving income inequality in the U.S with more tax policies that hit higher income classes and raising middle class income.
The proposal might be a trigger for a long debate between the President side and the Congress, or more specifically the Republican side which has been wanting a new President for a long while.
I personally feel that Obama's priorities are justified, as income inequality has become more and more of a glaring weakness that might not be better for the next few decades if we keep using the excuses of policies like these are killing the economy. Debt level should not be that much of a concern as it has been shown that projected debt will be manageable even until 2025 at 2.5% of gross domestic products. If once again the Republican side gains advantage, it would be great news for the minority rich of the country, and income inequality might be here to stay for much further.
5 comments:
Income inequality is a very controversial issue in America as the rich keeps getting richer and the poor keep staying poor. I understand Obama's decision to raise tax on the richest and increase the incomes of the middle class through new spending and tax credits because societies with greater income gap would experience slower and less stable economic growth. However, i do not think it's a great choice to create a budget that would lead the America to deeper debt. Moreover, Making 2 year community college free for all is not a very wise idea. I understand education should be accessible for all, but that's when America can actually afford it, not spending beyond its means. Instead of making its easily accessible, why doesn't the president create more grants that can help students who are deserved and not those who go because it's free
I agree that the community college would not be a great idea even though it sounds like it. Making community college free i think would not solve the problem it would just move it upwards. Meaning that it would raise the education level yes but it would not solve the income problem longterm.
President Obama also mentioned a credit of $ 3,000 for child care and an additional $ 500 if both partners work. This should be passed as it would financially support millions of people and would make them more productive.
Erica, that is a great point. This would be a valid step in supporting parents and families while attempting to prompt economic growth. These are policies that can start to open up doors to two-income families that were previously closed.
I agree with Austin and Erica. These tax credits to working families would help tremendously. Although he raised the taxes on the rich, the top 1%, these people can still afford to pay these taxes and not change their daily lives. And his tax stimulus plans have worked in the past if you look at consumer confidence levels and the growth of our economy.
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