President Obama's proposed 2016 budget is massive and complicated. So we decided to break it down to give our readers who are not familiar with the details a better understanding of some of the things that President Obama would like to do with your money.
Total Cost
$4 Trillion
Tax Hikes
- Capital gains increase on couples making $500,000 a year plus from 24 percent to 28 percent
- A new capital gains tax on inheritance. This is based on how much the deceased's inheritance has grown in value since the time of purchase.
- A one-time 14% tax on companies’ accumulated foreign earnings, along with a 19% minimum tax on overseas earning. This 19% tax would come by closing a loophole that allows companies to avoid taxes on money that is not brought back to the United States. This would be used to pay for Obama's two favorite things, "Roads and Bridges."
- A limit on the value of all itemized deductions, including one for charitable gifts, to 28 percent for individuals who earn more than $200,000 and couples who earn more than $250,000.
- A 0.07% tax on banks with over $50 Billion in assets.
- $2.5 billion in new taxes over the next ten years for fossil fuel projects on public lands
- Federal cigarette taxes would double to nearly $1.95 a pack.
- Reintroduces the "Buffet Rule" that would require those making over $1 million to pay at least 30% of their income in taxes.
- Increase in security fee paid on one way airline tickets from $5.60 to $7.50.
Total New tax Increases: $1.5 Trillion
Tax Credits
- A new $500 credit for two income households earning up to $150,000 a year. Estimated cost: $89 billion over ten years.
- A $3,000 tax credit to pay for child care for each child under 5-years of age. Estimated Cost: $50 billion over ten years.
- Extends the Earned Income Tax Credit to low-wage workers with no children. Estimated cost: $60 billion over 10 years.
New Spending (Partial List)
- $60 Billion for free community college, over ten years.
- $561 billion for the Pentagon, an increase of $38 billion over the cap set in the "sequester."
- $530 billion for non-defense, discretionary spending, $37 billion over the cap set in the "sequester."
- $478 billion in infrastructure AKA "Roads and Bridges" (I mean, the budget proposal even has a picture of a bridge on it for Pete's sake.)
-$3 billion for Science, Technology, Engineering and Math education.
- $2 billion in new funding for the IRS.(Because they totally earned it, amirite?)
- $1.5 billion in new spending by the Health and Human Services Department for Head Start programs
- $1 billion toward Central American political and economic development.
- $859 million in new spending to mark the centennial of the National Park Service
- $750 million to the Department of Education for a pre-K development program, moving toward universal pre-K.
- A 1.3% pay increase for all federal employees
Total in New Spending: 6.4% increase over 2015 levels.
Obviously these are just a few of the new expenditures that have been found in the president's new budget proposal. But this list represents the major elements of what the president is proposing in his new budget.