Federal Budget Proposal Helps Average Americans, Says Strategic Consulting Services

February 25, 2015 (PRLEAP.COM) Business News
New York February 25, 2015 Strategic Consulting Services (www.strategiccs.org), a New York firm providing financial advisory services for consumers sees the recent 2016 budget proposal from the White House as a victory for the personal finances of average Americans. With big changes that include free community college education and tax breaks for families, the budget proposal signals the reality that America's middle class needs help. At the same time, the President's budget is drawing criticism for shifting more of the tax burden to companies and the wealthiest Americans.

President Obama's 2016 budget proposed to Congress this month features landmark programs benefiting the middle class. The record $4 trillion budget leans on corporate profits overseas and raises taxes on the wealthy to shift tax burden off of families and the working poor. The budget for 2016 will begin on Oct. 1 and reflects a 6.4 percent increase over spending this year with a projection that the deficit will decline by $474 billion.

The President's proposed budget would incorporate the following:
  • Provides funds to encourage states to offer free community college to eligible students
  • Tax breaks for families paying for child care, low income people without children, and college students paying tuition
  • Limit deductions for top earners to 28 percent rate
  • Cut corporate tax rate from 35 percent to 28 percent over time by closing corporate tax loopholes
  • Impose a 19 percent tax on corporate profits earned overseas and one-time 14 percent tax on past earnings if corporations had them obscured overseas to avoid taxes
  • Increase tobacco taxes and index for inflation
  • Adds a small inheritance tax for the wealthiest Americans an a new "Fair Share Tax" making millionaires pay at least 30 percent tax rate

  • The budget also removes the "sequester" cuts from 2011 across the entire budget, resetting budget changes across-the-board that impacted programs across the nation. In addition, the proposed budget includes $478 billion in spending on infrastructure which includes roads, bridges, ports and transportation nodes. "While infrastructure investment will continue to be needed even after the economy reaches full employment, time is running out to make these needed investments under ideal economic conditions," the White House budget said.

    With Obama describing this as a "breakthrough year for America," opposition to the budget focuses on the nation's $18 trillion debt and concerns for programs like Medicare and Social Security. Republicans will respond with their own balanced-budget plan this spring, hinting their budget will address the burden of national debt on future generations, reform the tax code, and trim large growth of expensive government programs.

    "The middle class in America has been squeezed over decades of growing debt, stagnant wages, plus a housing bubble with financial crisis that resulted in record bankruptcies and foreclosures. The proposed changes reflect significant shifts in policy that help families pay bills, help individuals get education to improve their situation in life, and support overall economic recovery. The President's budget is however a 'suggestion' which Congressional committees will take into consideration as they approve bills to fund various federal programs," says Ben Kittle, Senior Financial Consultant at Strategic Consulting Services. "As taxpayers, it is now our responsibility to make sure our elected representatives know how we feel about the proposed changes, so that they get enacted in our best interest."

    About Strategic Consulting Services
    Strategic Consulting Services is a financial services firm with teams specialized in Debt Management, Mortgages and Business Services. With a comprehensive client-focused approach, the Company provides assessments looking beyond immediate financial issues to help clients build greater financial strength with smart habits and choices. Since 2007, Strategic Consulting Services has helped individuals and small businesses create savings plans, reduce debt, and make wiser spending choices. For more information visit www.strategiccs.org.

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