President Obama’s Budget Plan Includes Big Tax Increase — On Millionaires

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Source: Tom Curry / MSNBC

President Obama’s budget proposal for the next fiscal year, FY2013, will be delivered to Congress on Monday.

Obama will propose that millionaires pay a minimum tax rate of 30 percent and will project a budget deficit of $901 billion in FY2013, representing 5.5 percent of gross domestic product (GDP), down from $1.33 trillion, or 8.5 percent of GDP this year, White House officials say.

But that deficit forecast assumes that Congress will allow income tax rates on people earning more than $250,000 a year to increase at the end of this year, an outcome that seems highly unlikely, given congressional Republican opposition to the idea.

Obama’s budget blueprint will request over $800 billion in spending over several years on transportation infrastructure and economic stimulus programs. “There is pretty broad agreement that the time for austerity is not today,” said Jack Lew, Obama’s chief of staff, on NBC’s Meet the Press. But after 2013, he said, “We need to be on a path where, over the next several years, we need to bring our deficit under control.”

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