Obama’s budget — which is being rolled out today — seeks to raise $580 billion in new revenue, as part of a plan to reduce the deficit by $1.8 trillion over 10 years.
A preview document explains (vaguely) how the revenue will be raised.
Raises $580 billion for deficit reduction by limiting high-income tax benefits, without raising tax rates.
–Implements the Buffett Rule, requiring that households with incomes over $1 million pay at least 30% of their income (after charitable giving) in taxes.
— Limits the value of tax deductions and other tax benefits for the top 2% of families to 28%, reducing these tax benefits to levels closer to what middle-class families get.
There’s also this, which will sock a fair number of high earners.
— Ends a loophole that lets wealthy individuals circumvent contribution limits and accumulate millions in tax-preferred retirement accounts.
— Ends a loophole that lets financial managers pay tax on their carried interest income at the lower capital gains rate.
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