Where the Tax Chips Fall in Obama's Budget Proposal

President Barack Obama's budget proposal would lead to significant tax increases on upper-income Americans, and also to moderate increases on some lower-income Americans, largely because of a new tax on tobacco products, according to an analysis by a Washington think tank. 

The Tax Policy Center, a project run by the Urban Institute and the Brookings Institution, found that the budget plan would raise roughly $1.1 trillion over 10 years through a combination of limits on tax breaks, a tax on the banking industry and new estate taxes, among other things. The White House's proposed tax increases have run into stiff opposition from congressional Republicans. 

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The TPC analysis offers one of the first in-depth, outside reviews of the White House's plan since it was offered April 10. 

TPC found the tax increases would primarily affect upper-income earners, with 86% of the additional taxes paid in 2015 coming from Americans earning more than $200,000. That is largely because the plan would limit the value of certain tax breaks at 28%, which would boost income taxes paid by those in the 33%-and-higher tax brackets, essentially raising taxes for couples with taxable income above about $223,000 currently.

Read the whole story HERE.

A Related Story: Obama's Budget Would Lead to the Highest Federal Tax Rate in 4 Decades

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