Tax Proposals in the 2010 Budget
The Tax Policy Center offers the table below as a guide to the tax provisions of President Obama’s 2010 Budget. Subsequent pages provide detailed descriptions and brief commentaries on each provision. Linked tables show the distributional effects of the overall proposal and of major elements of the plan. Further details on the analysis appear below the table.
Download complete analysis in PDF format View distribution tables
1. Couples with income over $250,000 and single people with income over $200,000.
2. Require information reporting for rental payments ($3 billion), eliminate oil and gas company references ($31 billion), modify FAA financing (-$77 billion) and modify alternative fuel mixture credit ($1 billion).
3.The Administration baseline continues the 2001 and 2003 tax cuts (with the estate tax fixed at 2009 law) and indexes the 2009 AMT parameters for inflation.
Descriptions of tax provisions and revenue estimates come from Department of the Treasury, General Explanations of the Administration's Fiscal Year 2010 Revenue Proposals, May 2009.
Revenue effects shown in the table cover 11 years—2009-2019—even though the budget would begin in 2010 and most of the tax changes would take effect in 2011. Some tax proposals would affect revenue in 2009 because of behavioral changes.
The Tax Policy Center has posted a variety of tables showing the distributional effects of the entire set of tax proposals, all individual tax proposals, and selected specific proposals. Click here for a linked guide to those tables.
The administration assumes a baseline that permanently extends the 2001-2003 tax cuts, makes the estate tax permanent with 2009 parameters, and indexes the exemption for the alternative minimum tax (AMT) from its 2009 level. Most of our distribution tables compare the effects of tax proposals separately both against the administration’s baseline and against a current law baseline that assumes that the 2001-2003 tax cuts expire in 2011 as scheduled and that the AMT exemption reverts to its permanent value after 2009.
For each tax proposal, a separate web page describes current law, the proposed change, and its distributional effects. We do not consider the long-term effects on the economy.
Because some of the tax proposals are not indexed for inflation, their real effects of many tax proposals would change over time. The value of most unindexed proposals would decline in real terms, either because their values are fixed in nominal dollar amounts or because nominal phaseout thresholds would affect more taxpayers. Click here to read a more complete discussion of the impact of indexing.
TPC will update this analysis as the budget moves through Congress.