The federal budget proposal of United States is not supposed to be announced till 4th March but as per the proposal details available to public; it can be assumed that the budget would lessen down the retirement benefits. Actually, those benefits will be curbed to turn down the national debt. Though the proposal is ambiguous to some extent yet the upcoming debate of both parties will clear the picture.
OBAMA’s previous offer of augmenting the cost of living under the pretext of chained consumer price index will also drop as per details. It is presumed that the traditional CPI would hit the downtrodden and ex governmental officials to largest extent. Most of the people opine that the existing social security has already failed to cope up with the inflation rate. On the other hand, a correspondent of MarketWatch “Robert Schoeder” said that White House spokesman stated that the GOP had not given any offer to shut tax loopholes however we had to relinquish the proposal.
It goes without saying the previous budgets of OBAMA administration appeared to be designed for big tax payers and a certain amount of earning had been fixed for taxes – at individual taxpayers earning more than $183,000 and couples earning more than $225,000. Hazel Bradford in pensions and investment reported to have said that the “this move would drastically affect those people who have large income and there will be sufficient augmentation in the tax liability.
Besides, the budget cap mentioned at the page number 18 of the proposal states that it would limit tax preferred account of an individual below the $205,000 figure. OBAMA administration opines that this cap would raise $9 billion over the next decade. John D. McKinnon of Wall Street Journal estimates that it would be around $ 3.4 million but it may fall down if the rate goes higher.
OBAMA urged in his state of Union speech to Congress that “wealthy people are benefited from the tax breaks but it does nothing for the downtrodden of United States thereby fix the upside down tax code”.