President's FY 2011 Budget Request

• Promotes job creation and continued economic recovery through tax incentives and spending programs
• Supports the Administration's domestic programs, including funding boosts for education and human services
• Projects $1.2 trillion in deficit reduction over 10 years through a series of revenue and spending proposals including:
• Eliminating 2001 and 2003 tax cuts for high-income taxpayers (includes provision to cap at 28% itemized deductions for charitable contributions)
• Establishing a three-year spending freeze on top-line non-defense discretionary spending, which includes funding for nearly every government agency and program not designated for defense or mandatory initiatives.
• Reducing and eliminating 126 programs and other initiatives for savings of $23 billion in FY 2011

The President's budget is not binding and Congress will now act through its tax and appropriations committees to put some or all of these provisions in effect for the upcoming fiscal year.

Analysis of the President's Budget

• Independent Sector summary (IS member password required)
• Administration's budget overview (PDF)

Tax Issues (IS member password required)
The Obama budget calls for tax initiatives to help spur job growth and economic development; maintaining the estate tax at the 2009 levels; maintaining the 2001 and 2003 tax cuts for middle class earners; and increasing taxes on those in the highest bracket, including a measure that would reduce the value of tax deductions for charitable donations, state and local taxes and real estate expenses for families earning more than $250,000.

Spending Items (IS member password required)
The Obama budget outline for fiscal year 2011 sets discretionary spending for both defense and non-defense programs at $1.4 trillion. It calls for boosting funding for some domestic priorities, including education and job creation, while imposing a three-year top-line cap on non-defense programs.

Last Updated: February 18, 2010

-Top of Page-