Some Highlights From Obama’s FY2013 Budget

Published by Michael Novogradac on Saturday, February 11, 2012 - 12:00am

Select Tax Highlights from the President’s Budget:

  • Extension of the payroll tax cut and unemployment insurance benefits for rest of 2012.
  • Continuing to allow businesses to write-off the full amount of new investments.
  • Project Rebuild, series of policies to help connect Americans looking for work in distressed communities with the work needed to re-purpose residential and commercial properties, creating jobs and stabilizing neighborhoods.
  • $2.2 billion for advanced manufacturing R&D, a 19 percent increase over 2012.
  • Tax incentives for manufacturers who create jobs in U.S.,doubles deduction for advanced manufacturing; establishes a Manufacturing Communities Tax Credit to encourage investment in communities affected by job loss.
  • Elimination of 12 tax breaks to oil, gas, and coal companies will raise $41 billion over 10 years.
  • National Infrastructure Bank to fund projects of national importance.
  • Calls for individual tax reform that: cuts the deficit by $1.5 trillion, including the expiration of the high-income 2001 and 2003 tax cuts; simplifies the tax code, lowers tax rates, and protects progressivity; eliminates inefficient and unfair tax breaks for millionaires while making all tax breaks at least as good for the middle class as for the wealthy; and observes the Buffett Rule that no household making more than $1 million a year pays less than 30 percent of their income in taxes.
  • Financial Crisis Responsibility Fee on largest financial institutions. Raises $61 billion over 10 years and is intended to offset cost of TARP and the President’s mortgage refinancing program.