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.
Most Popular Stories
- National Retail Federation Reduces Sales Forecast
- Honda' s Accord Plug-in Hybrid Is a Fuel Miser
- Hernandez lawyer: Pats Records Dispute Resolved
- Social Media Startups That Pay You to Post
- Female Business Owners Still Face Gender Gap
- Congress Leaving Town as Deadlines Loom
- Amazon Fire Phone Improves on Familiar: Review
- Oregon Voters to Decide on Recreational Pot
- 4th Circuit Upholds Obamacare Subsidies
- Oregon to Vote on Recreational Marijuana