Proposed Budget is a Mixed Bag

The President's $3.8 trillion proposed budget released today for fiscal year 2011 proposes to extend several of the "2001 Bush tax cuts" and the somewhat misleading "payroll tax credit", but not for all taxpayers. Further, the proposed budget assumes extension of 2009's estate tax with a $3.5 mil exemption and 45% tax rate, and the repeal of the LIFO accounting method which is estimated to miraculously generate $59 bil.

The budget proposes a 2.7% increase in discretionary, non-military spending from 2010 levels to $1.16 trillion, however that deemed "non-security spending" is proposed to drop 1.1%.