President’s Budget Proposes Undoing Tax Deal

Although he signed the bipartisan agreement in the lame-duck session that staved off major tax increases, the President’s heart was apparently not in it. ATR has produced a list of the tax increases in the President’s proposed budget for fiscal year 2012. Here some of the lowlights:

Raising the top marginal income tax rate (at which a majority of small business profits face taxation) from 35% to 39.6%.  This is a $709 billion/10 year tax hike

Raising the capital gains and dividends rate from 15% to 20%

Raising the death tax rate from 35% to 45% and lowering the death tax exemption amount from $5 million ($10 million for couples) to $3.5 million.  This is a $98 billion/ten year tax hike

See here for the full list.

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