The Obama budget for 2016 proposes tax hikes from 2016 to 2025. The wealthiest Americans pay more taxes under the proposed budget, while corporations such as banks and insurance providers can expect a rise in taxes. The president expressed interest in raising taxes through executive action, reports Forbes.
The budget proposes a rise in the proportion of federal taxes to gross domestic product from 17.5 to 19.7 percent by 2025, reports Townhall.com. The proposal caps the deductions for the wealthiest in the United States at 28 percent. The proposal imposes a 14 percent one-off tax on currently untaxed foreign corporate income and a 19 percent tax on foreign profits going forward, according to Townhall.com.
Additional taxes on tobacco and large financial firms raise $95 billion and $112 billion, while capital gains tax hikes are in the pipeline over the next 10 years. Millionaires pay a minimum of 30 percent tax, while retirement savings are due for a tax hike; the proposal caps retirements to a figure enough to generate $210,000 a year starting at age 62, notes Forbes.
The proposal repeals charitable donations, making them nondeductible, if they entitle donors to advance sport ticket purchases, reports Yahoo. It also repeals the Last In First Out inventory accounting method to generate additional federal revenue, while reforms in the finance and insurance sector raise more revenue, according to Fox News.