No business can operate without a strong budget plan, and the US Government is no exception. Peter Orszag, President Obama’s Office of Management and Budget Director, has officially committed to submitting the new 2010 US operating budget that will map out federal spending for the next few years. It is also the responsibility of the new team to finalize the 2009 operating plan as well.
Like any budget, the US plan will provide a fiscal outline including all operating costs and income. Obama’s campaign promises laid the groundwork for the changes that Americans can expect. Both Obama and Vice President Joe Biden will enforce rules that require new spending commitments or tax changes to be offset by cuts to other programs or generated income.
Tax law revisions and other new policies are to be expected. Bush-approved tax cuts for the wealthy will be eliminated. Additionally, the Treasury will be empowered to close the $350 billion tax gap between taxes owed and taxes paid through tax shelters and offshore accounts. Many special interest tax loopholes will also be closed.
Both Obama and Biden believe in “transparency” and greater regulation for all spending proposals, thus a reduction in special interest spending is looming on the horizon. The presidential team also promises to slash unnecessary government spending and require multiple bids on any government project in excess of $25,000.
The new president plans on eliminating any costs that are not vital to the stability and growth of both the government and the private sector. While the government begins tightening the belt, Americans are starting to do the same. What tips do you have for saving on your budget that the new administration can apply in a broader context?
i’m glad obama is bringing in a new era of responsibility. i’m 31 and in my lifetime i’ve seen my friends around me acquire debt through the years and i always wondered how they made ends meet. i have modest debt but nothing over $500 at the moment. i think all of us will be well advised to live within our means. there is nothing shameful in that. as for myself, i’ll be cutting out coffee (shops), extra dinners out, and i’ll be trying to put away what i can from my monthly income. at the moment i’m auto-transferring $25 a week from my checking to my savings.
I hope they can stick with their ethics and beleifs – if they can, the US will become a better place, if they get sucked into the political corruption machine, we will keep going down hill. I will hope for the best and follow “d’s” plan on saving my money and not getting into debt.