President Obama’s budget proposes raising tax
revenue above its historical average over the next decade in order
to pay for federal spending. So where does all the new revenue come
from? Tax hikes and tax-code changes on high earners, the energy
industry, tobacco, and more.
The Cato Institute’s Nicole Kaeding samples a
few of the revenue raisers in the new White House budget
plan:
- Buffet Tax” ($53 billion): President Obama resurrected this tax
that would require high-income individuals to pay at least 30% of
their income in taxes. - Limiting tax teduction ($598 billion): President Obama would
also limit the value of itemized deductions for high-income
earners. - Changes to the “Death Tax” ($131 billion): The president
suggests going back to the estate tax rules of 2009 which would
increase the marginal tax rate on estates and lower the exemption,
subjecting more assets to taxation. - Changes to oil and gas taxation ($44 billion): Frequently
criticized by the president, these tax provisions are not subsidies
to oil and gas companies, but instead ameliorate the tax code’s
improper treatment of capital expenditures. - Changes to international taxation ($276 billion): Instead of
moving the United States to a territorial tax system like the rest
of the industrialized world, the president proposes further raising
taxes on corporation with overseas earnings. - Cap on 401(k)/IRA Contributions ($28 billion): This provision
would prohibit individuals from contributing to retirement accounts
if the balance is greater than $3 million. - Increase in tobacco taxes ($78 billion): To pay for his
universal pre-k proposal, President Obama would increase the
tobacco tax from $1.10/pack to $1.95/pack.
The folks at Americans for Tax Reform have more detail on the
energy tax changes
here.
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