The White House released detail on Wednesday of President Obama’s 2014 budget blueprint, in which he outlines his plans to make high earners pay more to reduce the deficit, as well as new spending cuts to replace the temporary ‘sequester’ reductions which were brought in last month.
If the President were to get his way then US taxpayers earning over $1 million per year would be required to pay at least 30% of their income in taxes. He would also introduce a 28% cap on the tax deductions allowed to high earners. In combination with a tranche of spending cuts, this would allow the US to bring its budget deficit down to 2.8% of GDP by 2016, according the white house estimates. This stands in contrast to the 5.3% of GDP which the Congressional Budget Office has predicted for this year’s deficit.
Other notable inclusions in Obama’s budget proposal include…
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