President Obama unveiled a $3.55 trillion budget for 2010 with a deficit of $1.75 trillion for the current fiscal year. The fiscal 2010 budget sets aside a “reserve fund” of $634 billion as a “down payment” on the costs of universal health care coverage over 10 years. The budget, while not specifically calling for additional bank bail out funds, also creates a budget allocation of $750 billion for the Treasury Department to purchase financial assets of struggling banks. This amount is $50 billion larger than the first bank bailout. The budget also imposes higher taxes on carbon through a “cap and trade” system that generates $645 billion over 10 years in new revenue by creating an auction among utilities and companies where they purchase pollution credits. These credits cover the “price” of the pollution each utility or company producers. Those who produce less pollution can sell them to companies that produce more. The new proposal for the coming fiscal year and beyond includes many ambitious and costly programs that would have to be approved by Congress.
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