1_2011_budget - Tax Proposals in the 2011 Budget The Tax...

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Tax Proposals in the 2011 Budget The Tax Policy Center offers the table below as a guide to the tax provisions of President Obama’s 2011 Budget. Subsequent pages provide detailed descriptions and brief commentaries on each provision. Linked tables show the distributional effects of the overall proposal and of major elements of the plan. Further details on the analysis appear on the next page. View Distribution Tables at http://www.taxpolicycenter.org/taxtopics/2011_budget_tables.cfm Temporary Recovery Measures Making Work Pay Credit -61 Temporary increased expensing for small businesses * Cash assistance to states in lieu of housing tax credits -0.2 Temporary bonus depreciation for certain property -2 Temporary Tax Credit for Increases in Payroll -50 Other temporary provisions not evaluated 1 -13 Individual Tax Provisions Provisions Affecting Lower- and Middle-Income Households Provisions Affecting High-Income Households Expand Earned Income Tax Credit -15** Expand refundability of Child Tax Credit ** Reinstate 36 and 39.6 percent rates for high-income taxpayers 2 364 Expand Child and Dependent Care Tax Credit -13 Provide American Opportunity Tax Credit -75 Reinstate personal exemption phaseout and limitation on itemized deductions for high-income taxpayers 2 208 Expand saver’s credit and require automatic enrollment in IRAs -40 Impose 20 percent rate on capital gains and dividends for high-income taxpayers 2 107 Eliminate Advanced Earned Income Tax Credit 1 Limit value of itemized deductions to 28% 291 Business Tax Provisions Eliminate capital gains taxes on small businesses -8 Tax carried interest as ordinary income 24 Make research & experimentation credit permanent -86 Reform U.S. international tax system 117 Reform treatment of financial institutions 93 Combat Under-Reporting in Offshore Jurisdictions 5 Codify economic substance doctrine 4 Reinstate Superfund Taxes 19 Increase certainty regarding worker classification 7 Repeal LIFO 59 Eliminate fossil fuel tax preferences 39 Reform treatment of life insurance companies 14 Business provisions not evaluated 3 45 Individual and Business Continue remaining expiring provisions through CY 2011 -56 Reduce the tax gap and make reforms 14 Extend and modify new markets tax credit -3 Modify estate and gift tax rules 24 Total, all tax provisions 1,065 Tax revenue adjustments to administration baseline4 Index 2009 parameters of the AMT to inflation -672 Continue the 2001 and 2003 tax cuts -2,739 Make 2009 estate tax permanent -264 Expand earned income and child tax credits -98**
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* Less than $50 million. ** The administration includes expanded refundability of the child credit and part of the expansion of the earned income credit in its baseline. The $98 billion revenue cost of those provisions over the 2010‐2020 period is included under “Tax revenue adjustments to baseline.” Of that cost, $15 billion results from providing more EITC to married couples and $83 billion comes from expanding the child credit. COBRA health insurance premium
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1_2011_budget - Tax Proposals in the 2011 Budget The Tax...

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