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