How Obama's budget would hit the rich.
Obama is proposing a «Fair Share Tax,» which is a concrete version of his Buffett Rule — named after billionaire investor Warren Buffett.
Throughout his time in the White House, President Obama has pushed for the wealthiest Americans to pay more.
The oft-stated goal: to help reduce deficits, help pay for new investments and make the tax system «fairer.»
Of course, some broad proposals in his 2014 budget would affect people up and down the income scale. For example, he would raise cigarette taxes and change how inflation is calculated.
But he also includes several measures that specifically target high-income households.
Cap value of tax breaks: As he has proposed before, Obama wants to limit the value of itemized deductions and exclusions for high-income households.
Normally a taxpayer multiplies her top tax rate by the amount of a deduction to calculate the taxes saved. But Obama would cap that rate at 28%, which is below the top two income tax rates. So, for example, someone in the 39.6% bracket today would save $39.60 on a $100 deduction. Under Obama's proposal, she would save $28.
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