I just had the pleasure of doing my taxes for 2010. Good news, I get a return. Bad news, I thought it would be a bit larger. But welcome to the middle class where 35% of your income is taken off the top. So I start listening to all the budget talk. Most of the proposed cuts I hear about are cuts to things that benefit the poor and middle class: heating assistance, baby formula assistance, community redevelopment funds, etc. All of this while the unemployment rate lingers around 10%, prices for food and fuel are up, people are taking pay freezes and cuts, etc.
So I want to know what the wealthier set will be asked to sacrifice. This is what my search turned up.
- Ending tax breaks for coal, oil, and gas sectors. Oil, gas and fossil fuel companies would lose tax breaks and subsidies and have to pay more taxes on profits.
- Re-introducing an environmental corporate tax (Superfund taxes for clean-ups)
- Ending tax breaks for businesses who transfer profits overseas
- Increasing taxes on financial partnerships and hedge funds
- Cap tax deductions on things such as charitable donations and mortgage interest paid by the wealthiest Americans (comes to about a 30% decrease in itemized tax deductions)
- Allowing Bush tax cuts to lapse for those making over $250K a year.
- A proposed tax on the largest financial firms and banks (which the Republicans oppose)
The New Yorker had a good article on tax reform. It's worth a look.