Rev up

10 April 2013 By Daniel Indiviglio

The president doubles down on taxing the rich as the Buffett levy makes an official appearance. New revenue is the centerpiece of Obama’s deficit-cutting ambitions, with millionaires, buyout bosses and smokers targeted. That probably dooms his budget plan – and a big debt deal.

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U.S. President Barack Obama released his budget for the fiscal year 2014 on April 10, saying it would reduce deficits by $1.8 trillion over a decade with new taxes and other revenue adjustments. It would also boost spending on some programs, which the White House says would stimulate the economy.
The administration is seeking to cut deductions and benefits for wealthier Americans to raise tax receipts by $530 billion over 10 years. He also seeks to raise $53 billion by implementing the so-called Buffett Rule, which would require millionaires to pay at least 30 percent of their income, after charitable contributions, in federal taxes. Obama’s plan generates another $16 billion of revenue by closing the carried interest loophole. The president also would nearly double the tax on cigarettes to fund a new public preschool program.
The 2014 budget proposes to reduce some spending from projected levels. One reform would change cost-of-living estimates to better reflect the rate of inflation, reducing projected budgets by $230 billion over a decade. The president also seeks to save $400 billion by revising policies in programs like Medicare and Medicaid.

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