Obama Is Serious About Making the Rich Pay Higher Taxes

Obama Is Serious About Making the Rich Pay Higher Taxes

By Joshua Holland, AlterNet. Posted February 27, 2009.

Barack Obama's first budget proposal fulfills several of the promises he made during the 2008 campaign, but the Corporate Right is poised for a fight.

On Thursday, President Barack Obama released his first budget proposal. A quick-and-dirty review of its provisions prompted the nonpartisan Tax Policy Center to state the obvious: "In case you hadn't noticed, the Bush years are definitely over."

The New York Times summarized what's in store if it passes:

President Obama will propose further tax increases on the affluent to help pay for his promise to make health care more accessible and affordable, calling for stricter limits on the benefits of itemized deductions taken by the wealthiest households, administration officials said Wednesday.

The tax proposal, coming after recent years in which wealth has become more concentrated at the top of the income scale, introduces a politically volatile edge to the congressional debate over Mr. Obama's domestic priorities.

The Associated Press adds that while the proposal "lacked many details," the "policies represent a clear ideological break from the Bush administration":

President Barack Obama's budget proposal would shift much of the tax burden from middle- and low-income families to the wealthy, while increasing taxes on many businesses.

Oil and gas companies would be hit with big tax increases, as would U.S. companies doing business overseas. Hedge fund and other private equity managers would also see significant tax increases.

Tax cuts enacted under [George W.] Bush for families making more than $250,000 would be allowed to expire in 2011, increasing the top income tax rate from 35 percent to 39.6 percent. The top capital gains tax rate would be increased from 15 percent to 20 percent.

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