"General Explanations of the Administration's Fiscal Year 2011 Revenue Proposals" describes in detail the tax provisions proposed in the 2011 budget along with revenue estimates. The Joint Committee on Taxation has also provided detailed discussion of the tax proposals in the budget and posted its own estimates of the revenue effects.

Extend the 2001-2003 income tax cuts for low- and middle-income taxpayers.

The president’s budget would permanently extend all of the 2001-2003 tax cuts for couples with income under $250,000 and others with income under $200,000.

Raise income taxes on the rich.

The president’s budget would allow the 2001-2003 tax cuts to expire for couples with income over $250,000 and others with income over $200,000. The following changes would occur:

• The top two tax rates would increase from 33 and 35 percent to 36 and 39.6 percent. more
• Long-term capital gains and qualified dividends would face a top tax rate of 20 percent. more
• The phaseout of personal exemptions (PEP) and the limitation on itemized deductions (Pease) would again affect high-income taxpayers. more
• The value of itemized deductions would be limited to 28 percent. more

Make 2009 AMT parameters permanent and index them for inflation.

The president’s budget would index the AMT exemptions, the AMT tax brackets, and the threshold above which the AMT exemption phases out, starting with the 2009 values of those parameters. more

Make the 2009 estate tax permanent.

The president’s budget would make the estate tax permanent at the level in effect for 2009: a $3.5 million exemption (effectively $7 million for married couples) and a 45 percent tax rate. more

The Administration Baseline assumes five permanent changes to the individual income tax (2010-2020 revenue cost in parentheses):

• Extend the 2001-2003 tax cuts for all individuals ($2,739 billion). more

• Make Permanent the 2009 AMT exemptions and index them for inflation ($672 billion). more

• Make the estate tax permanent using 2009 parameters ($265 billion). more

• Make permanent the expanded refundability of the child credit ($83 billion).
• Make permanent part of the expansion of the earned income credit ($15 billion).