Obama seeks $467 billion in tax changes to fund jobs plan

WASHINGTON Mon Sep 12, 2011 1:44pm EDT

WASHINGTON (Reuters) - President Barack Obama is proposing cutting $467 billion in tax breaks for wealthier Americans and some companies to offset the cost of his job-creation plan, White House Budget Director Jack Lew said on Monday.

"In order to invest in jobs and growth, we're going to have to pay for it," Lew told reporters as Obama prepared to submit his $447 billion jobs program to Congress on Monday.

He said the extra $20 billion in cuts were intended to "build in a cushion" to make sure the plan is paid for without adding to budget deficits, as Obama has promised.

Lew said the "tax provisions" that Obama was proposing included:

-- A limit on itemized deductions and certain exemptions on individuals who earn over $200,000 and families who earn over $250,000, which would raise roughly $400 billion over 10 years.

-- A proposal to treat carried interest earned by investment fund managers as ordinary income rather than taxing it at capital gains rates, which would raise $18 billion.

-- Eliminating certain oil and gas industry tax breaks that would raise $40 billion.

-- A change in corporate jet depreciation rules that would raise $3 billion.

(Reporting by Steve Holland and Matt Spetalnick; Editing by Eric Beech)

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Comments (4)
djaymick wrote:
If the payback of his plan takes 10 years, then the funding should take place in that timeframe. He proposed and the legislation passed a law called “PAYGO”. This forces Washington to stay within their annual budget. It calls for spending cuts or revenue increases in the year of the increased spending. So, now the President wants $450B now that any Congress in the future can balk at repaying.

Sep 12, 2011 2:47pm EDT  --  Report as abuse
skifiSSS555 wrote:
Basically: tax the “rich” millionaires and billionaires making +200k a year to pay for more special treatment for government union employees. Its official, things aren’t going to pick up until at least 2012!

Sep 12, 2011 2:59pm EDT  --  Report as abuse
djaymick wrote:
The President promised the same taxes when he was proposing the health care law. This was soundly rejected by the Democrats in Congress, who could have passed this without Republican votes. He also had to back away from the tax increase he called for at the end of last year due to the shellacking his party took in November. Now, he believes that he can dictate the same demands and get what he wants with a GOP House.
What makes this any different than before?

The media that will disregard the separation of powers outlined in the Constitution to enable Obama to be king of America. The way it works is this – the President (executive branch) PROPOSES a bill or spending, it goes to Congress (legislative branch) to be written, evaluated by the CBO and then brought up for a vote. If it passes, it goes back to the President who can either sign it or veto it. However today, where the media usurps its powers to promote their political viewpoint, such facts (a learning experience to most) are lost to make this President look good. How many times have we heard the press express disdain because Bush’s numbers were dropping? Never, but in the Obama World, we get sob stories about “how he’s really, really trying, but those darned, racist, barbaric SOBs aren’t letting him do what he does best – polarize a political opponent and spend whatever he wants.
We heard stories about how $800B was the perfect amount to get the economy back on track in 2009. Now he needs an additional $450 to keep payroll tax cuts and unemployment benefits (neither a job creator), “shovel-ready projects” (he’s serious this time) and public employee state jobs, which undermines the tough decisions that governors like Walker, Cuomo and Christie had to endure. Governors in California (Amazon tax)and Connecticut (union concessions) will be wiping the sweat from their brows given the terrible budgets/promises they put together that have will create bigger deficits next year.

Sep 12, 2011 3:10pm EDT  --  Report as abuse
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