Obama proposes TAX HIKES on wealthy to pay for $447B JOBS BILL – TheHill.com
Obama proposes tax hikes on wealthy to pay for $447B jobs bill
By Sam Youngman – 09/12/11 01:23 PM ET
The White House said Monday that President Obama wants to pay for his $447 billion jobs bill by raising taxes on the wealthy and business.
Jack Lew, director of the Office of Management and Budget (OMB), said Obama’s entire bill, which the administration is sending to Congress Monday evening, can be paid for by raising taxes on the wealthy and business.
The chief provision announced by Lew would be to limit itemized deductions for individuals who make more than $200,000 a year and families that make more than $250,000, something the Obama administration has previously pushed to do through its budget proposals. Lew told reporters at the White House press briefing that this would raise about $400 billion.
The administration would tax the income investment fund managers make, known as “carried interest,” as regular income instead of as capital gains, which has a low 15 percent tax rate. This is another long-standing administration goal that has been resisted by Wall Street as well as some Democrats.
The administration estimates the capital gains change would provide $18 billion in revenue.
The administration also wants to eliminate tax breaks for the oil and gas sector, which would raise $40 billion, the adminstration said.
Another $3 billion would come from changing the way corporate jets depreciate. With a few other revenue raises, Lew indicated the total measures proposed by the administration would bring in $467 billion, $20 billion more than the cost of Obama’s jobs bill.