News Column

Obama Budget Would Raise Taxes

April 23, 2013

A non-partisan analysis of U.S. President Barack Obama's budget proposal finds it would raise taxes on not just the wealthy but many middle class Americans.

The Tax Policy Center said one tenet of Obama's budget would increase the federal tax on a pack of cigarettes from the current $1.01 per pack to $1.95, hitting smokers of all income brackets.

A second change, The Washington Post said Tuesday, has to do with the income brackets themselves. Currently, the brackets change from year to year to adjust for inflation. Obama's budget alters the formula used to determine what the brackets would be, moving them higher at a slower pace. The impact is deductions and exemptions have slightly less impact and increased income would more immediately move individuals into a higher tax bracket.

The Tax Policy Center said 86 percent of the tax increases in Obama's budget would be paid by people earning $200,000 or more by 2015. However Americans with more modest incomes would still feel a pinch: Those making less than $100,000 would pay about $100 more in federal taxes under the plan; Those making $100,000 to $200,000 would pay about $150 more, the center estimated.

Obama put forth his budget plan this month but it likely won't be taken up by Congress any time soon, the Post said.

For more stories covering politics, please see HispanicBusiness' Politics Channel

Source: Copyright UPI 2013

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters