Obama’s 2011 Budget – Business Tax Cuts, Making Work Pay Extension, Social Security Payment, Pell Grant Increase and More Stimulus Spending

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President Barack Obama has unveiled a multi trillion-dollar budget focused on creating jobs and reducing the nation’s high unemployment rate.The job focused budget would boost the deficit to a record-breaking $1.56 trillion, an increase of 5.7 percent for the current budget. It also forecast that spending would rise another 3 percent in 2011 to $3.83 trillion. Much of the spending surge started in 2008 and includes costs associated with the massive economic stimulus passed by Congress to deal with the worst economic downturn since the Great Depression. The surge in the deficits reflects not only the increased spending but also a big drop in tax revenues, reflecting the 7.2 million people who have lost jobs since the recession began and weaker corporate tax receipts.

Fast Insurance Quote Comparision for Your BusinessHere are the key financial aspects of the proposed 2011 Budget.

– Extending tax cuts for businesses, including a $5,000 tax credit for hiring new workers this year, help for the unemployed and $25 billion more for cash-strapped state governments.

– Extension of the popular Making Work Pay middle-class tax breaks of $400 per individual and $800 per couple through 2011. They were due to expire after this year. The budget also proposes making $250 payments to Social Security recipients to bolster their finances in a year when they are not receiving the normal cost-of-living boost to their benefit checks because of low inflation.

– The budget assumes enactment of a comprehensive health care program, the issue that dominated the president’s first year in office. Passage of that proposal is currently stalled with Democrats trying to figure out how to cope with the loss of a key Democratic seat that gave them the 60 votes they needed to overcome a Republican filibuster.

– Federal support for elementary and high school education would get what the administration termed the biggest increase in history. The Pell Grant college tuition program which would see an increase of $17 billion to just under $35 billion, helping an additional 1 million students.

– A boost in taxes on the wealthiest Americans, families making more than $250,000 annually, by allowing the Bush tax cuts of 2001 and 2003 to expire. The provision also aims to reduce the rate at which these same households write-off itemized deductions.

– The new Obama budget will also include a proposal to levy a fee on the country’s biggest banks to raise an estimated $90 billion to recover losses from the government’s $700 billion financial rescue fund (TARP).

– In a bow to worries over the soaring deficits and growing government spending, the administration proposed a three-year freeze on spending beginning in 2011 for many domestic government agencies. It would save $250 billion over the next decade by following the spending freeze with caps that would keep increases after 2013 from rising faster than inflation. Military, veterans, homeland security and big benefit programs such as Social Security and Medicare would not feel the pinch. In fact the budget requests increases for homeland security and veterans programs, with a 3.4 percent increase in the Pentagon’s core budget to $549 billion for next year.

– Obama also kills his predecessor’s signature space program to return astronauts to the moon. NASA had already spent $9.1 billion on the program, which was projected to cost $100 billion by 2020. Obama’s new budget said NASA will be “launching a bold new effort” with an extra $1.2 billion annually for five years, money expected to be used to encourage private companies to build, launch and operate their own spacecraft for the benefit of NASA and others. NASA would pay the private companies to carry U.S. astronauts.

[Update] The President’s budget was recently approved in Congress after much debate. You can see details on the final approval here, along with the 2011 deficit reduction plan proposed as part of future budgets.

Related

~ Updates & Taxes on the 2009-2010 Economic Stimulus Credits and Payments
~ 2010 US Economic Outlook – Strong Growth Expected as Recession Fades
~ More Stimulus Checks, Social Security Payments and Tax Credits in 2010, 2011 and Beyond
~ A Second 2010 Economic Stimulus in President Obama’s New Job Programs Focusing on Small Business, Infrastructure and Home Energy Efficiency

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37 Comments on "Obama’s 2011 Budget – Business Tax Cuts, Making Work Pay Extension, Social Security Payment, Pell Grant Increase and More Stimulus Spending"

natasha dyer`
i think it,s bull crap that they would give crack heads money before they help people who really need help i am not greedy but i cant even get on section 8 i have tried since 2003 every time they tell you to call you get no body to answer but yet you have people that have kids to live off welfare and dont want to work because they are lazy me i need help bad all the grants they tell you to sign up for free you have to pay for just to get approve why do you have to get approve for a grant i need help paying rent i struggle every freaken day i budget my money the best way i know how buy going to threft store to get my kids close and other people that have kids they pass their close down to my kids… Read more »
Donna & Mary Ann
What about all the non US citizens living and working here free of charge..they get a full paycheck while their US citizen co-workers take home barely enough to survive because of the taxes taken out..only US citizens pay taxes..I’m sorry, but if you live and work in the US you should become a citizen within 18 mos…that means taking citizenship classes..including learning to speak, read and understand our language..you pay taxes like everyone else and if you aren’t willing to do that then bye bye..I know a Korean woman who has been here over 20 yrs..she can’t speak or read our language, yet she works with me, takes home 100% of her check, we do the same work…actually I do her work as well as mine she just takes credit for the finished work, and she has a drivers license?? The US gov. is a joke and a bad one… Read more »
Jeff

My son is Autistic and lives off SSI. So to Rudy below, SSI is meant to live off of for people with disabilities. In California the $830 per month barely covers all his expenses. He can’t have more than $2000 in assets and money; if he has more, his SSI is reduced. He can’t save money due to this rule. He can’t earn or receive in gifts more than $60 per month, or his SSI is reduced.

As SSA payroll taxes are lowered, I worry he will have even less money each month. He started out at $845, 2 years ago. Now he is at $830. I am hoping SSI is somehow separate from these taxes, but I don’t know.

Julie
The thing is Obama proposes a bill but congress has to pass it and it is ultimately their decision.Obama can pass it by them but they have to approve it. As far as Obama has done this or that wrong well we had Bush in the White House and looked what happened. Bush came in and was pissed about what happened while his father was in office,started a war that we can’t end and now half of our American soldiers are dead and the ones still over their fighting for something that Bush created is losing. Our country will never be the same. 911 was blamed on this and that and the blackbox was retrieve but the voices on it will never be known. Obama is just a man and etleast he has made an effort to do something besides sit on his ass all day or fly around NY… Read more »
Anthony
I’m currently on SSI and attempting to do whatever it takes to become financially stable. Living off SSI is a struggle when everything is going up but folks want to blame Obama but its not his fault. Republicans claim they are fighting to protect Americans but it seems to me all the care about is protecting the wealthy. If Obama losses in 2012 and a republican becomes president things are gonna get even worse and they will destroy this country from within but if anyone truly believes a republican can do better, by all means put one in office. Just remember people, if a republican assumes power don’t complain because we are the ones who put that person in charge. Personally, I believe a republican wins in 2012 the recession will be making a comeback followed by another Great Depression and when that happens, politicians will sit behind closed doors… Read more »
Rudy

310 million people live in the U.S. Of them 155 million pay federal income taxes. It seems the Republicans want to protect the wealthy (umm… tax payer) and the Democrats want to protect the welfare class (umm… the non-tax payer). I’m ready to hear the story about tax fairness. In a “Free” country you can choose not to learn and/or not to work if it’s lucartive to do so. Please Mr./Ms. Democrat (liberal), stop lining the welfare class with my tax dollars and then tell me you need more to broaden your voting base. Stop buying votes with taxpayer monies. SSI was never intended to live off of, so stop convincing the welfare class its a retirement fund… (It’s not big enough!)

Mrs Smith
sorry some of my spelling was wrong I tend to think ahead of what I want to say. The Obama’s have spent nearly twice as much as the Bushes look it up people. Were do you think our money’s going on the illegals that came here and those from over sea’s and all the money the Obamas are sending to Palinstan for their Military and he wants to cut our Military as he says he wants are money to go to all these people that didn’t earn. They dropped the GPA and the test scores for being police officers and why didn’t they lower things for the American Citizens thatgot good gradesno wight for the illgals then will lower every thing. Stop all Amnesties-No Dream Acts- No Reparation-No Totalization Agreement’s and no more Treaties for any thing with any one over sea’s,we have beeen waithing ove 60yrs to have clean… Read more »
tony

If you learned how to spell, maybe somebody would pay attention to the message you are trying to send. I got as far as 3 sentences and realized i cant go any further. Im sure there are some “illegals” that have better spelling and grammar than you!

Dolly

April 3,2011

I think we need a new president, i don’t get any help from the government .But i see people that need help . I say send them back across the border make work for americans . People need to not buy gas for one day and not buy milk or bread see if the price comes down?

kim

we dont need a new president we need for the republicians to stop trying to cut spending. the republicians was the ones to deny the 250 stimulus check in november of 2010. obama is trying to give the people money. the republicians are trying to stop him. remember we had bush as president and he ran our country in the ground. we went to war when we didn’t have to . we lost a lot of jobs, banks homes were going dowhill. we were in a recession. and obama is trying to fix bushes mess by truing to get us out.

Mrs Smith
We believe the obama’s want to be remembered as the only people that ever did any good, well in a lot of peoples minds they’ll be remembered as the most extravagant greedy people in the History OF AMERICA them as hero’s .We lost jobs and what did he do let the Mexican’s in with NO background check or health records or speak-read-write- and job skilld was having too many kids because they heard they’d get a lot of money for them and they ruined their country now they are taking from are poor and a great education for our children and jobs that those American’s that were out of work and on the streets could of taken but no like D.Feinstein and others hired Mexicans so they’d have cheap labor and they’ed get richer. well to a lot of people we want to stop paying for everyones vacations- night out-… Read more »
jo ann Lambright

Its a sad day when the UNITED STATES OF AMERICA can not take care of its elderly especially when they worked hard all there lives and then reach what some call the GOLDEN YEARS and we
are at the point of choises between meds and food.I whould love to be able to take my grandchildren on a little trip my husband has passed away and before I go that is something I so want.But then there we go back to meds. and food.I can eat beans and cornbread.Thank GOD I have a son who is disabled and raising two children and helps me as he can.Dont get me wrong I love the USA my Dad fought for it I am a flag flyer.

AB

WHATS SO SAD ALSO ILLEGALS GET MONIES OUT OF BUDGET ( SSI) I KNOW WHAT YOU ARE SAYING ABOUT CHOICES FOOD OR MEDS AT MY AGE I AM RAISING A 7 & 6 YR. OLDS THAT AIN,T CHEAP BUTT I AM BLESSEDMY DAUGHTER HELPS ME ME IN A LOT OF WAYS. BUTT LIKE YOU NO EXTRAS OF ANY KIND

Rosa

It is not the people who build this country that are using the public benefits. Everyone is against Obama and he is only trying to help something he did not create.

Gwen Martin
Man I can’t believe these politicians. We all know when you live on a budget and can’t afford everything you have to cut back on certain things. Well listen up Obama, Congress and all the others on Capital Hill. Start cutting out things that we don’t have to have. Cut out all the foreign aid, travel into space and all the unnecessary things we Americans don’t have to have. Take care of the American people first. Our government is just ignorant when it comes to spending money. Guess what if the American people don’t work and pay taxes Congress won’t be eating. China now owns 40% of America. If the people of the United States will get these so-called politicians out of office and put someone in that knows what it’s like to earn his wealth maybe we can balance the budget and they will see that our elderly will… Read more »
G Curry

thats crazy how the congress think about there seniors who help build this country. I wish it was something we can do about that. I know who im voting for next time.

[…] statement of his priorities and an assessment of the economic outlook for the coming year. Like his 2011 budget Congress has to review/approve the majority of proposals and in a number of cases they do not get […]

jean
mr obama. would you please fight for us you fight for the middle class and the rich , why not the poor people we help you to get in the office , we need someone to stand up for us so we can be heard also . i know everyone in office dont have the worries we have , they have no idea what it is like to live on 674.00 a month and have to pay rent , electric,gas, food , medical, and find a way to fit cloths in a tight budget, we really need someone to stand up for us to be heard …..i know you can they listen to you mr, obama i know we are the poor people of american that alot would like to forget that we are alive, they sure would not give up their income for 2 months to help us ….… Read more »
Marnetta Yelverton
I am a 53 retired/disable Nurse. I began sick in1994 and had a stroke. I was out of work for 7months. I had to go to therapy for many months. I wasnt recieving assistant. I had money saved and doing this time i had ahusband. Be i returned to work andworked up to December 2002/I have diabetes and i been diagnose with neurapathy(damage to your nerves. I cant stand a long period of time. I also have been diagnosewith High Blood Pressure. I returned to work and work 10years longer. I wanted to work, but today, i not able to hold down a job for 8hrs due to this neurapathy. It’s very painful. I am asking for Pres. Obama, Congress, HR to please give others and myself the 250.00 stimulus check to help us with portion of our cost of living. Lot of us have to pay Prescription Plan and… Read more »

[…] already has ordered a three-year freeze in non-defense and national security programs in Obama’s budget released Feb. 1, and ordered some agencies to reduce their 2012 budget requests by 5 […]

Maria Fesler

I don’t understand why President Obama won’t fight harder for his people to get a stimulus check in 2011 . He’s helping everybody else why not people that are disabled and can not work due to medical conditions. My Fiance and i are both on SSI and were struggling just to make it day to day and to buy food when we hardley get any food stamps and have to depend on food banks to help us. Come on help us out and consider getting us all some help the cost of living is going up how we all suppose to make it .

Mary Cowherd

Im a single mother ,that cant work anymore.Im raising a 14-year-old son,and,paying bills out of 1 child support check.I do get food stamps,and,i appreciate what i get,but,the older kids get,the more they eat.Im waiting to hear about my hearing from my lawyer.I hope i hear something soon.God bless me with it.Amen!

2011 Federal GS Pay Raise From 2010 By General Schedule Grade

[…] inflation environment. The proposed 2011 federal pay raise was in line with President Obama’s budget request for 2011 civilian and military pay scale increases. Current law requires a two-part GS pay […]

[…] economy and low inflation environment. This raise was in line with President Obama’s budget request for civilian and military pay scale increases. The law requires a two-part GS pay […]

[…] [Update Jan 2010] The additional $250 payment in 2010 is now also part of President Obama’s 2011 budget proposal, which means this payment could be received later, rather than earlier, since the budget needs to […]

Darwin v smith
i think bailing out banks credit cards and any farmer with 2 thousand acres or more should onlly get money for up too 2 thousand acres not 10000 or 100000 acres ,because that was made up for family farmers not big business . and for social security NASA SHOULD PAY THE MONEY BACK THEY TOOK OUT TO MAKE THE MOON MOVIE, AT 30PERCENT A YEAR AND WHAT A PISS POOR MOON MOVIES .THEM IMBREAD FOR GOT TO TO PUT THE STARS IN THE BACKGROUND SET .STOOPED!!!!!!!!!!!
Dolly Scoggins

Are we going to get a stimulus check in 2020 ?

me

probly not because obama and his wife needs it more than the people do for her spending money and unneeded vactions that they take . he needs embeached for he lied to all the people of America

kim

obama and his wife had money and takin trips before he became president. what about all the money bush and his wife spent. oh i forgot since he is white and a republician that doesnt matter. well i think obama is doing a good job. obama and the dems. was fighting for the stimulus check but the republicians voted no. he cant do a lot if everybody are siding and voting for the republicians. and i live off social security and my boyfriend has a good job.

Small Business Tax Aid Package

[…] give large corporations, many of which are sitting on cash due to uncertainty about the economy, an incentive to spend and invest; thereby creating new jobs. This measure, an expansion of a previous tax incentive […]

[…] give large corporations, many of which are sitting on cash due to uncertainty about the economy, an incentive to spend and invest; thereby creating new jobs. This measure, an expansion of a previous tax incentive […]

[…] to spend more to encourage growth and lower unemployment. U.S. debt has hit about $13 trillion and 2011′s budget deficit is heading toward $1.56 trillion. Despite the uncertainty surrounding President […]

[…] will let all the tax break’s lapse and will most likely settle on President Obama’s 2011 Budget tax proposals that extends the tax breaks for those earning less than $250,000 (married) or […]

[…] – the deficit to 3 percent of our GDP, the 2015 goal the Obama administration set in its 2011 budget. That tax boost would mean the lowest income tax rate would jump from 10 to nearly 14 percent, and […]

natasha dyer

i am a single mother i am taking care of 4 kids one who lives with my mother in detroit michagan and three boys who live with me why are we not getting a stimulus check this year its not right me and my son did not ask to be disable at all its hard to find a job i want to work but do to me having health issues and i have two sons that are disable only me and one of my kids are getting ssi my oldest son have adhd severily and i have been trying to get his ssi started for 2 years and been denied twice i have to hire a lawyer i,m staying with a familiy member do to i have no car i think it would help if people who cant work get the stimulus pay this year to

[…] President Obama has put in place more stimulus funded tax breaks for small business in his latest budget. The President is pushing Congress to use $30 billion that had been set aside from the TARP program […]

[…] is some more information on what President Obama had to say when signing the jobs bill, which legislates the HIRE act, into […]

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