The White House has released its proposed budget for the 2015 fiscal year. The Congressional Budget Office (CBO), reports that the proposed budget would increase tax revenue by $1.4 trillion over the next decade. It would also cut deficits by $1.o5 trillion and fund new proposed spending, the CBO has said.
The White House’s own numbers are more optimistic than the non-partisan CBO’s, projection cumulative deficits of $4.9 trillion compared to the CBO’s projection of $6.6 trillion over the next ten years. The two estimates differ primarily because the CBO forecasts slower economic growth, which would result in lower tax revenue.
The proposed budget increases revenue by limiting tax breaks for the wealthy and for businesses, increasing taxes on tobacco products, creating a new millionaire tax, and restoring estate and gift taxes to the higher rates they had in 2009. The budget also proposes to increase spending by canceling the automatic spending cuts to military and domestic programs, which were part of the ‘sequester,’ and increasing funds to job training programs and expanding tax credits for low-income taxpayers.
The proposed budget is of course just that, a proposal. Congress has the final word of the purse strings. The chances of the Obama budget being passed as-is are nonexistent. The GOP has advanced a budget put together my Representative Paul Ryan that proposes deep spending cuts and no tax increases. In both cases, the budgets may be designed more to support stump speeches for November’s election. Unless one party gains control of both houses of Congress in that election, we are likely to face another budget standoff like those of recent years.
Horowitz Law Offices represents individual and business taxpayers for a variety of tax concerns before the Internal Revenue Service, the Illinois Department of Revenue and the Chicago Board of Finance. You are welcome to contact us at (312) 787-5533 and email@example.com