WASHINGTON -- While President Barack Obama is proposing to cut some taxes for companies that hire workers, his budget would raise a host of other taxes on businesses and wealthy individuals.
The budget proposal released Monday would extend Obama's signature Making Work Pay tax credit -- $400 for individuals, $800 for a couple filing jointly -- through 2011. But it would also impose nearly $1 trillion in higher taxes on couples making more than $250,000 and individuals making more than $200,000 by not renewing tax cuts enacted under former President George W. Bush. Obama would extend Bush-era tax cuts for families and individuals making less.
Obama revived numerous proposals for business tax increases that didn't fare well in Congress last year, including a scaled-down plan to increase taxes on U.S. companies with major overseas operations, and plans to increase taxes on oil and gas companies.
In all, Obama would increase taxes on some businesses and wealthy individuals by a total of about $1.4 trillion over the next decade, while cutting taxes for middle-class workers and other businesses by about $330 billion. The bottom line: Tax receipts would increase by about $1.1 trillion over the next decade.
Congressional Democrats praised most of Obama's initiatives, but their lukewarm response to some of the tax increases suggests a tough fight for the administration. Obama's proposal to increase taxes on international businesses would be better addressed as part of a package overhauling the entire tax system, said Sen. Max Baucus, D-Mont., chairman of the tax-writing Finance Committee.
Rep. Dave Camp of Michigan, the top Republican on the tax-writing House Ways and Means Committee, said, "This budget features too many new taxes, too much new spending and too much new debt." - FOX News Story
No comments:
Post a Comment