Obama has released a document that unveils his 2014 budget, which is almost 244 pages long. While there are a few ideas that have found favor in the eyes of the critics, here are the 3 best ideas of the lot:
#1: Funding Pre-K through Cigarette Tax
With the proposal of “Preschool for All”, the way by which Obama plans to pay for this is by raising the tax on cigarettes from $1.01 to $1.95 per pack. This would bring in at least $78 billion so as to fund preschool for every child below the age of four.
Yet the beauty of raising the tobacco tax will ensure that it reduces the consumption of cigarettes especially amongst the youth.
#2: Capping itemized deductions at 28 percent
Almost 90 percent of deductions that richer taxpayers avail of fall into the categories of charitable contributions, mortgage-interest deduction as well as the state and local tax deduction. This tax will ensure that a cap is applied for the subsidies that offered for these three activities.
Even though this proposal has been a part of their budget ever the since the Obama administration came into office, and still hasn’t been passed, it continues to remain on the list.
#3: Rolling Out the Affordable Care Act
Even if the Affordable Care Act isn’t really considered to be a part of the budget, it will play an important role in reducing costs if they get it right despite much opposition from the Republicans. With no cooperation shown by Republican governors to either set up insurance exchanges or even aid in Medicaid expansion, it seems as if they don’t want anyone to enjoy the benefits that this healthcare system offers. This is making it harder for the administration to carry out.
Yet there’s no doubt that the success of the Affordable Care Act will ensure that the country is able to control costs in the future and in turn, be successful as well.