Rejected Tax Increases Make a Return in Obama Budget Proposal – Bloomberg

On February 14, 2011, in Latest News, by admin

By Richard Rubin and Ryan J. Donmoyer – Mon Feb 14 16:23:17 GMT 2011 The budget plan would allow auto dealers to collect a $7,500 tax credit on the sale of plug-in electric cars rather than require buyers to wait until they file tax returns to claim the credit.


By Richard Rubin and Ryan J. Donmoyer
Mon Feb 14 16:23:17 GMT 2011

The budget plan would allow auto dealers to collect a $7,500 tax credit on the sale of plug-in electric cars rather than require buyers to wait until they file tax returns to claim the credit. Photographer: Jeff Kowalsky/Bloomberg

President Barack Obama proposed a
budget that calls on Congress to raise the taxes of the highest
U.S. earners, multinational corporations and oil and gas
companies, reviving revenue provisions that Congress has
rejected or brushed aside before.

The budget, released today in Washington, would bring back
pre-2001 tax rates for individuals earning more than $200,000
annually and married couples making more than $250,000. The
estate tax would return to 2009 levels with a $3.5 million per-
person exemption and a 45 percent top rate. Under a law Obama
signed in December, lower tax rates expire at the end of 2012.

“These policies were unfair and unaffordable when enacted
and remain so today,” Obama wrote in his budget message.

The budget plan includes a proposal that would limit
itemized deductions for top earners to 28 percent, curbing the
value of tax breaks for charitable contributions and home
mortgage interest.

Under the budget’s assumptions, federal revenue as a
percent of the economy would increase from 14.9 percent in 2010
to 20 percent in 2021. Part of that increase stems from
projected economic growth, not from policy changes.

AMT Patch

The plan includes offsets for the first three years of a
“patch” that would prevent the alternative minimum tax from
expanding. By not permanently paying for limits on the reach of
this tax, which was originally intended to be levied on the
wealthy, the administration assumes a revenue source toward the
end of the 10-year budget timeframe that Congress has
consistently opposed.

Obama is proposing an array of tax incentives. They
include the elimination of capital gains on some small business
stock, a permanent extension of the tax credit for business
research, and extension of a tuition tax credit. He is
proposing to revive the Build America Bonds program, which
expired at the end of 2010.

The administration also wants to send $250 this year to
retirees and some government employees who aren’t benefiting
from the payroll tax cut included in the December tax law.

Obama again proposes limits on multinational companies’
ability to defer income taxes on profits they earn outside the
U.S. Corporations such as Microsoft Corp. and Cisco Systems
Inc
. have argued against the proposals in previous years. Those
provisions would raise an estimated $129 billion over 10 years.

Oil, Gas Taxes

The budget would raise about $46 billion in proposals to
change the tax treatment of oil, gas and coal companies. It
reduces the impact of a “bank fee” designed to recoup the
cost of the Troubled Asset Relief Program from $90 billion to
$30 billion.

Obama has called for an overhaul of the corporate tax code
that would lower rates and broaden the tax base. He provided no
details on an overhaul in his budget plan.

The budget revives a proposal that Congress pass
legislation requiring executives of investment partnerships
including private-equity firms to pay ordinary tax rates on the
profits they receive as compensation. This pay, known as
carried interest, currently can qualify for lower capital gains
tax rates. The proposal would raise $14.8 billion over 10
years.

In making that proposal, the administration appears to be
favoring a scaled-back version of the carried interest plan
considered in the Senate last year. In his previous budget,
Obama proposed more extensive limits on carried interest that
would have raised $24 billion over 10 years.

The budget plan includes a series of changes to simplify
tax laws. For example, it would allow auto dealers to collect a
$7,500 tax credit on the sale of plug-in electric cars rather
than require buyers to wait until they file tax returns to
claim the credit.

Minimum Withdrawals

Another provision would repeal a tax rule that requires
retirees to take minimum withdrawals from individual retirement
accounts with a balance of less than $50,000 after they turn 70
½. “The administration proposes to simplify tax compliance for
retirees of modest means,” according to the budget plan.

Obama also wants to revise an information-reporting
requirement included in last year’s health-care law that has
drawn opposition from lawmakers of both parties and from small
businesses. The law currently requires businesses to report
payments to corporations totaling $600 for services and goods.
Obama would still require the reports on Form 1099 for
purchases of services, although not of goods.

The budget plan includes $85.4 billion in fees that would
be collected over a decade, including a new one to help the
Commodity Futures Trading Commission carry out oversight of
derivatives. The proposed budget estimates the CFTC would
collect $117 million in fees in 2012 alone.

The Treasury Department will release more details of the
tax proposals this afternoon.

To contact the reporters on this story:
Richard Rubin in Washington at
[email protected];
Ryan J. Donmoyer in Washington at
[email protected]

To contact the editor responsible for this story:
Mark Silva at
[email protected]

Continue reading here: Rejected Tax Increases Make a Return in Obama Budget Proposal – Bloomberg

Lady Gaga Arrives At Grammy Awards In An Egg (Of Course She Does!)

On February 13, 2011, in Celeb, Music, by nadia

Did you miss Lady Gaga ? Ha ha, that was a trick question! Get it?

Lady Gaga Egg Grammys

Did you miss Lady Gaga? Ha ha, that was a trick question! Get it? Because she never went away. That said, it remains clear that we’re in the early stages of what will surely be a new and possibly more intense phase of Gagamania.

It was just two days ago that Lady Gaga dropped “Born This Way,” the first single and title track off her new LP; not surprisingly, the song shot straight to the top of the iTunes Singles Chart. Tonight, she arrived at the Staples Center in Los Angeles for tonight’s 53rd Annual Grammy Awards in the most unusual fashion. Yes, that’s right, Lady Gaga showed up for the Grammys in an egg.

During a bizarre and decidedly deadpan interview with Ryan Seacrest on E!, supermodel (and Adam Levine girlfriend) Anne V explained that Lady Gaga was currently in a “creative embryonic stage.” She went on to tell Seacrest that the “womb” (her words, not ours) was designed by Hussein Chalayan and that Gaga’s heartbeat in said womb was 126 beats per minute.

What did you think of Lady’s Gaga translucent fashion moment of the night? Be sure and let us know!

RELATED: Check out a full history of Lady Gaga’s outfits, including Lady Gaga’s Top 50 Hottest Outfits of 2010.

[Photo Credit: Getty Images]

Continue reading here: Lady Gaga Arrives At Grammy Awards In An Egg (Of Course She Does!)

Page 245 of 245« First...102030...241242243244245
Free WordPress Theme