The top 10 new taxes in Obama's budget

Politico has a list of the top 10 "biggest and boldest" tax proposals in President Obama's FY 2016 budget, which would raise $1.387 trillion over the next 10 years.

Every single dime of that would go to fund new spending schemes by the president.  Zero would be applied to the deficit, which the CBO says will hit a trillion dollars by 2025.

Here are a few of them (All amounts raised reflect the total over 10 years.):

"BUFFETT TAX": The White House wants millionaires to pay a minimum tax rate of 30 percent. Raises $35 billion..

LIMITING ITEMIZED DEDUCTIONS FOR THE WEALTHY: Obama wants to limit the value of itemized deductions used by the wealthy, such as mortgage interest, to 28 percent of their income.Raises $640 billion.

CAPITAL GAINS: The administration wants to hike the top rate to 28 percent from the current rate of about 25 percent with various surcharges, while expanding the number of things that would be subject to it. Raises $208 billion

TOBACCO TAX: Nearly doubles the tax on a pack of cigarettes. Raises $95 billion.

The middle-class tax credits the president has in mind aren't too bad (although increasing the much abused earned income tax credit might not be a good idea).  There's a $500 "second earner" tax credit for working families, an expansion of the child tax credit, and a tax credit for child care.  Taken together, these tax credits would cost us $208 billion.  It would be nice instead of raising taxes, Congress would cut spending to pay for it.

Well...we can dream, can't we?

Very few, if any, of these tax proposals will be considered in the Republican Congress.  The doubling of the tobacco tax would be popular (most voters don't like smokers), and closing a few loopholes for the ultra-wealthy might become part of a larger tax reform package.

But increasing the capital gains tax and limiting deductions are going nowhere, while the big banks will make sure they're immiunized from any "fees" that will be proposed.  Looking at the big picture, you realize that this is politics, not rational budgeting.  It's all part of the president's efforts to play class warrior at the GOP's expense.

Politico has a list of the top 10 "biggest and boldest" tax proposals in President Obama's FY 2016 budget, which would raise $1.387 trillion over the next 10 years.

Every single dime of that would go to fund new spending schemes by the president.  Zero would be applied to the deficit, which the CBO says will hit a trillion dollars by 2025.

Here are a few of them (All amounts raised reflect the total over 10 years.):

"BUFFETT TAX": The White House wants millionaires to pay a minimum tax rate of 30 percent. Raises $35 billion..

LIMITING ITEMIZED DEDUCTIONS FOR THE WEALTHY: Obama wants to limit the value of itemized deductions used by the wealthy, such as mortgage interest, to 28 percent of their income.Raises $640 billion.

CAPITAL GAINS: The administration wants to hike the top rate to 28 percent from the current rate of about 25 percent with various surcharges, while expanding the number of things that would be subject to it. Raises $208 billion

TOBACCO TAX: Nearly doubles the tax on a pack of cigarettes. Raises $95 billion.

The middle-class tax credits the president has in mind aren't too bad (although increasing the much abused earned income tax credit might not be a good idea).  There's a $500 "second earner" tax credit for working families, an expansion of the child tax credit, and a tax credit for child care.  Taken together, these tax credits would cost us $208 billion.  It would be nice instead of raising taxes, Congress would cut spending to pay for it.

Well...we can dream, can't we?

Very few, if any, of these tax proposals will be considered in the Republican Congress.  The doubling of the tobacco tax would be popular (most voters don't like smokers), and closing a few loopholes for the ultra-wealthy might become part of a larger tax reform package.

But increasing the capital gains tax and limiting deductions are going nowhere, while the big banks will make sure they're immiunized from any "fees" that will be proposed.  Looking at the big picture, you realize that this is politics, not rational budgeting.  It's all part of the president's efforts to play class warrior at the GOP's expense.