Budget plans-Republican vs Democrat

Two budgets are being proposed. Admittedly, one of them won't get much play time. A few highlights are: Under the president's plan, spending will top $4 trillion this year alone, and consume 28.5% of our nation's economy. The Obama plan would result in an exploding deficit, a doubling of the nation's debt in five years, and an increase of that debt to more than 82% of our nation's GDP by the last year of the budget. The Republican budget achieves lower deficits than the Democratic plan in every year, and by 2019 yields half the deficit proposed by the president. Under the Republican plan, debt held by the public is $3.6 trillion less during the budget period.

One of the biggest differences may be in taxes where instead of raising taxes the Republicans make permanent the 2001 and 2003 tax laws. In fact, they cut taxes and reform the tax system. Individuals can choose to pay their federal taxes under the existing code, or move to a highly simplified system that fits on a post card, with few deductions and two rates. Specifically, couples pay 10% on their first $100,000 in income (singles on $50,000) and 25% above that. Capital gains and dividends are taxed at 15%, and the death tax is repealed. The proposal includes generous standard and personal exemptions such that a family of four earning $39,000 would not pay tax on that amount. In an effort to revive peoples' lost savings, and to create an incentive for risk-taking and investment, the budget repeals the capital gains tax through 2010 for all taxpayers.

Discretionary spending is froze for five years, allowing it to grow modestly after that. The President's cap-and-trade scheme is rejected and our energy needs are solved by opening exploration on our nation's oil and gas fields, and by investing the proceeds in a new clean energy trust fund and infrastructure.

More detail can be found in the Wall Street Journal.