President Obama’s new tax-cuts and spending jobs stimulus bill is paid for by new tax increases on higher-income families — with the lion’s share coming from taxes Congress has already rejected.
Budget director Jacob “Jack” Lew told reporters Mr. Obama’s plan would limit tax deductions for individuals making $200,000 a year or families making $250,000, which he said would raise about $400 billion over the next decade.
Changes in the way investment partnership income is treated would raise another $18 billion, ending tax subsidies to oil companies would raise about $40 billion and tax adjustments on corporate jets would raise $3 billion. All told, the tax increases would total $467 billion.
Mr. Lew acknowledged that the impact hits high-income taxpayers the hardest, but said it was “just one piece” of the overall plan the president will officially propose next Monday.
Mr. Obama proposed some of these tax increases in earlier budgets, but they failed to pass Congress. Mr. Lew said administration officials think the time is ripe to revisit those ideas.
“We have choices to make. We have, in order to invest in jobs and growth, we’re going to have to pay for it. We’re going to have to look at quite a few things we’ve looked at before,” he said.
Mr. Obama earlier in the day said he was sending is jobs stimulus to Congress Monday afternoon.
House Speaker John A. Boehner, Ohio Republican, said any verdict on the president’s jobs plan will have to wait not only for the details on how it’s paid for, but on the Congressional Budget Office’s official scoring of the plan.
“Once we receive CBO’s analysis, we can begin the important work of reviewing the various elements of his proposal,” Mr. Boehner said. “The record of the economic proposals enacted during the last Congress necessitates careful examination of the president’s latest plan as well as consideration of alternative measures that may more effectively support private-sector job creation.”