Thursday, April 11, 2013

Obama 2014 Budget Proposal

President Obama releases 2014 budget proposal. On April 10, President Obama released his Fiscal Year (FY) 2014 federal budget proposals, which included $1.8 trillion of additional deficit reduction over 10 years. It contained many of the provisions proposed in his 2013 budget, along with several new ones, such as the use of a chained consumer price index, a $3 million limit on tax-preferred retirement accounts, including individual retirement accounts (IRAs), and an increase on the excise tax on tobacco. Among the budget provisions, are provisions that would: ... require that households with incomes over $1 million pay at least 30% of their income (after charitable giving) in taxes (the so called “Buffett Rule”); ... limit the value of tax deductions and other tax benefits for the top 2% of families to 28%; ... provide a 10% tax credit for small businesses that hire new employees or increase wages; ... provide a new tax credit to encourage employers to offer retirement savings plans and expands the tax credit for affordable child care. ... make permanent the American Opportunity Tax Credit; ... make permanent the increased refundability of the child tax credit; ... make permanent the earned income tax credit (EITC) for larger families and married couples; ... eliminate the capital gain treatment of carried interest; ... make permanent and enhance the research credit; ... provide incentives for manufacturing and clean energy; ... allow small businesses to write-off up to $500,000 of new investment; ... eliminate tax benefits for oil and gas companies and special tax rules for corporate jets; and ... implement reforms to prevent companies from shifting profits overseas to avoid U.S. taxes and to encourage “insourcing” and job creation in the U.S. For a detailed description of the tax provision in the President's budget, see ¶ 8. The Treasury Department's “General Explanations of the Administration's Fiscal Year 2014 Revenue Proposals” (the so-called “Green Book”) was released later that day. (212) 588-1113

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