President Obama's budget proposal would shift much of the tax burden from middle- and low-income families to the wealthy, while increasing taxes on many businesses. The budget outline released Thursday lacked many details about the tax provisions. But the policies represent a clear ideological break from the Bush administration. They include:
A clear ideological break on who pays taxes
February 27, 2009 at 3:02AM
Tax cuts enacted under President George W. Bush for families making more than $250,000 would be allowed to expire in 2011, increasing the top income tax rate from 35 percent to 39.6 percent. The top capital gains tax rate would be increased from 15 to 20 percent.
The Alternative Minimum Tax would be indexed to inflation, providing a long-term fix that would spare more than 20 million taxpayers from being hit with significant tax increases. The tax ensures that wealthy taxpayers pay at least some tax.
A tax provision that allows money-losing companies to get refunds from taxes paid in previous years -- when the companies were profitable -- would be expanded, costing $9.3 billion over 10 years.
Capital gains taxes on small businesses would be eliminated, saving $7 billion over 10 years.
Oil and gas companies would face a series of tax increases, including an excise tax for drilling in the Gulf of Mexico and elimination of the manufacturing tax credit for oil and gas companies. In all, those new taxes would raise and additional $31 billion over 10 years.
The government would go after more tax dollars from U.S. companies that do business overseas, raising an additional $210 billion over 10 years.
An accounting rule that enables companies managing large inventories to lower their tax liabilities would be repealed, for an additional $61 billion over 10 years.
A new provision would modify some aviation taxes or replace them with user fees, generating an additional $77 billion over 10 years. Aviation industry lobbyists said it appears to be an attempt to pay for modernization of the air traffic control system in part by charging each plane a fee to use the system.
Hedge fund and other private-equity managers would have their profits taxed as income instead of capital gains, raising an additional $24 billion over 10 years.
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His political views differed from a transgender classmate’s, but they forged a bond that lasted a decade — until Vance seemed to pivot, politically and personally.
