15 Tax Hikes Hidden In Obama's New Budget

The White House is billing its $3.7 trillion budget as a package of cuts that will reduce the deficit by $1.1 trillion over 10 years.

But at closer inspection this budget is as much about tax hikes as cuts.

In fact, the budget contains as much as $1.5 trillion in hikes over 10 years, according to the Americans For Tax Reform.

Here are the 15 taxes identified by ATR:

  • Raising the top marginal income tax rate (at which a majority of small business profits face taxation) from 35% to 39.6%.  This is a $709 billion/10 year tax hike
  • Raising the capital gains and dividends rate from 15% to 20%
  • Raising the death tax rate from 35% to 45% and lowering the death tax exemption amount from $5 million ($10 million for couples) to $3.5 million.  This is a $98 billion/10 year tax hike
  • Capping the value of itemized deductions at the 28% bracket rate.  This will effectively cut tax deductions for mortgage interest, charitable contributions, property taxes, state and local income or sales taxes, out-of-pocket medical expenses, and unreimbursed employee business expenses.  A new means-tested phaseout of itemized deductions limits them even more.  This is a $321 billion/10 year tax hike
  • New bank taxes totaling $33 billion over 10 years
  • New international corporate tax hikes totaling $129 billion over 10 years
  • New life insurance company taxes totaling $14 billion over 10 years
  • Massive new taxes on energy, including LIFO repeal, Superfund, domestic energy manufacturing, and many others totaling $120 billion over 10 years
  • Increasing unemployment payroll taxes by $15 billion over 10 years
  • Taxing management capital gains in an investment partnership (“carried interest”) as ordinary income.  This is a tax hike of $15 billion over 10 years
  • A giveaway to the trial lawyers—not letting companies deduct the cost of punitive damages from a lawsuit settlement.  This is a tax hike of $300 million over 10 years
  • Increasing tax penalties, information reporting, and IRS information sharing.  This is a 10-year tax hike of $20 billion.

Don’t miss: 50 Dead-Simple Ways For The Government To Cut Its Budget

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