Citizens for Tax Justice has released Tax Proposals in President Obama’s First Budget;
Budget Proposal Includes Significant Progressive Initiatives & Tax Reforms;
But Revenues Fall Far Short of Needs:
The table to the right shows how the combined
elements of the Obama tax proposals (and his capand-
trade proposal) would impact taxpayers in
various income groups if they were all in effect in
2011. In every income group except the top one
percent, taxes would be cut substantially, on
average by 1.8 to 2.7 percent of income. Taxpayers
in the top income group would face a small tax
increase, equal to 0.1 percent of their income.
As a result of these tax changes, the tax code would
become considerably more progressive. Because the
tax cuts for most people are debt-financed, however,
these improvements may be transitory, depending
on how the tax cuts are eventually paid for.
