White House Budget Curbs Some Deductions for the Wealthy
By GRAHAM BOWLEY, NYT
President Obama is no longer pressing to raise income tax rates on the rich. But that doesn’t mean he thinks the wealthy are paying enough in taxes.
Outlining his budget proposals to Congress on Wednesday, Mr. Obama pushed to raise more than $600 billion in new revenue, mainly by curbing deductions for the most affluent taxpayers and forcing millionaires to pay a minimum rate of 30 percent. Under the White House plan, deductions for tax breaks like mortgage interest and contributions to charities would be capped at a maximum rate of 28 percent. The caps would limit the value of the breaks to the top 3 percent of taxpayers who face higher marginal tax rates and generate about $529 billion in additional revenue over 10 years.
Many of the budget proposals, including the limit on deductions, have been made before by the Obama administration. Analysts said Congress was unlikely to adopt them in isolation, but that some Republicans might be open to a broader deal that included measures to close various loopholes in the tax code.
Chuck Marr, director of federal tax policy at the Center on Budget and Policy Priorities, said the main part of the tax proposal — curbing tax deductions for high-earners — could form part of a future deal because they were close to what Republicans have themselves proposed in the past. “In any agreement that finally comes together this will be the core revenue piece of it,” he said.
(More here.)
President Obama is no longer pressing to raise income tax rates on the rich. But that doesn’t mean he thinks the wealthy are paying enough in taxes.
Outlining his budget proposals to Congress on Wednesday, Mr. Obama pushed to raise more than $600 billion in new revenue, mainly by curbing deductions for the most affluent taxpayers and forcing millionaires to pay a minimum rate of 30 percent. Under the White House plan, deductions for tax breaks like mortgage interest and contributions to charities would be capped at a maximum rate of 28 percent. The caps would limit the value of the breaks to the top 3 percent of taxpayers who face higher marginal tax rates and generate about $529 billion in additional revenue over 10 years.
Many of the budget proposals, including the limit on deductions, have been made before by the Obama administration. Analysts said Congress was unlikely to adopt them in isolation, but that some Republicans might be open to a broader deal that included measures to close various loopholes in the tax code.
Chuck Marr, director of federal tax policy at the Center on Budget and Policy Priorities, said the main part of the tax proposal — curbing tax deductions for high-earners — could form part of a future deal because they were close to what Republicans have themselves proposed in the past. “In any agreement that finally comes together this will be the core revenue piece of it,” he said.
(More here.)
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