Obama’s Budget Blueprint Targets the Rich

by marketcurator

The White House released detail on Wednesday of President Obama’s 2014 budget  blueprint, in which he outlines his plans to make high earners pay more to  reduce the deficit,  as well as new spending cuts to replace the temporary  ‘sequester’ reductions which were brought in last month.

If the President were to get his way then US taxpayers earning over $1  million per year would be required to pay at least 30% of their income in taxes.  He would also introduce a 28% cap on the tax deductions allowed to high earners.  In combination with a tranche of spending cuts, this would allow the US to bring  its budget deficit down to 2.8% of GDP by 2016, according the white house  estimates. This stands in contrast to the 5.3% of GDP which the Congressional  Budget Office has predicted for this year’s deficit.

Other notable inclusions in Obama’s budget proposal include a 10% tax credit  for small business which hire new workers or raise wages for existing staff, and  additional spending on infrastructure and early childhood education. The  President has also chosen to adopt a more conservative measure of inflation to  calculate cost of living for recipients of federal welfare programs, which would  result in reduced benefit levels – this seems to be a compromise gesture to  win greater support from the Republican opposition, but it is sure to be  unpopular with many of his supporters….

Read more at http://marketcurator.com/obamas-budget-blueprint-targets-the-rich/#0VmT2aIKqTZ20tiQ.99