Proposed US Budget -- Concerns

President Obama's budget proposal, heading to Congress now, is generating a lot of concerns.

Gene Veith compiles some information here, for example, tallying near a trillion dollars in additional taxes over 10 years.

I'm not a fan of the proposed cap and trade strategy around carbon emissions, because I believe people grossly underestimate the economic drag on businesses and consumers, and it creates a huge "here's a new revenue stream we can manipulate" temptation for Congress.

Given the extra tax pressures on fossil fuel-based industries, I think we can assume there will be higher gas prices. Some have proposed that this is designed to make alternative fuels and electricity sources more cost effective. As we saw in 2008, higher gas prices lead quickly to higher prices for many products.

In general, business taxes will increase. Capital gains taxes will increase.

I realize we've had progressive taxation laws for decades, but this proposal appears to be accelerating the effect. Eliminating the itemized deduction for individuals earning more than $250,000 seems like class warfare. If you want to help homeowners and the construction industry, why eliminate the deduction for mortgage interest, at any income level?

And the direction appears to be pushing people to rely upon Government services rather than charities. There are mixed stories out there about eliminating charitable deductions. Giving by Christians should not be influenced only by tax policies, but it will be. And please show me examples of government run services that are superior to private services doing the same work.

I have to wonder how all this squares with consistent promises that if you make less than $250,000 your taxes won't be raised a penny.

I haven' t read through the original proposal. I have tried to look at a variety of news sources to get past biased viewpoints to something closer to facts. Some of the tax law changes are scheduled to take effect in 2010, 2011, or later -- under the presumption that the economy will improve, and there will be more rich people again to tax? Keep in mind, too, that this will not emerge from Congress without some changes. But the general directions are concerning.