Daily Reminder: February 1, 2012

Two Years ago today, the Obama White House released its proposed budget for Fiscal Year 2011. While Democrats later abandoned its constitutional obligation for political gain in the 2010 election year and adjourned without passing a budget, it is nonetheless worth noting what the practical consequences of the budget as proposed by Barack Obama would have.

From “Backdoor Taxes to Hit Middle Class,” a Reuters piece later taken down from the Web due to White House pressure, we discovered that if the president’s proposed budget had been passed, the following would have occurred:

  1. the special 10 percent tax bracket would have been eliminated
  2. the 25, 28 and 33 percent tax brackets would have reverted back to 28, 31 and 36 percent, respectively
  3. the top-tier personal income tax rate would have risen from 35 to 39.6 percent
  4. the tax on dividends would have increased from 15 to 39.6 percent
  5. the tax on capital gains would rise from 15 to 20 percent
  6. the estate tax would return with a top rate in excess of 55 percent
  7. the $250 tax credit for teachers would have been eliminated
  8. the tax deduction of up to $4000 of college tuition/expenses would be eliminated
  9. the first $2400 of unemployment benefits would be rendered taxable; and more.

279 DAYS UNTIL ELECTION DAY
354 DAYS UNTIL JANUARY 20, 2013

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