President Obama’s Brand New Tax Plan That’s a Year Old

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.


Back in 2011, when President Obama was negotiating with John Boehner over extension of the debt ceiling, he offered up a deal that included $800 billion in tax increases (over ten years). While Boehner was waffling, a bipartisan committee produced a deal that would raise taxes by $1.2 trillion. Obama went back to Boehner and said he couldn’t stick with the old deal when a bunch of Republicans had already agreed to $1.2 trillion, so that was his new offer. Boehner turned him down and talks collapsed.

Now a year and a half has passed and Obama just won reelection. So what’s his offer now? $1.6 trillion over ten years. Take that, Republicans! The reaction from liberals has been generally positive: they’re impressed that Obama is opening with a strong hand and upping the ante now that he has a mandate from the public.

But there’s really no news here. Obama’s proposal is the same one he campaigned on. A brief description is here, and a more detailed description from the Tax Policy Center is here. Here are the big ticket items:

  • Allow the Bush tax cuts on high earners to expire. $849 billion
  • Limit itemized deductions to 28 percent, close some loopholes and deductions on high earners, eliminate tax breaks for oil and gas companies, eliminate the carried interest loophole, plus a few other items. $584 billion
  • Create a special “Buffett Rule” tax rate for millionaires. $47 billion
  • Restore the estate tax to 2009 levels. $143 billion
  • Limit corporate income shifting to low-tax countries. $148 billion
  • Other miscellaneous tax increases and reductions. About -$200 billion
  • Total: $1.6 trillion

Bottom line: there’s nothing special about this proposal. It’s pretty much the same as the one in his 2013 budget, and it’s pretty much the same one he’s been running on for the past year. It surely didn’t come as any surprise to Boehner or the rest of the Republican caucus, and it shouldn’t be a surprise to anyone else either.

A BETTER WAY TO DO THIS?

We have an ambitious $350,000 online fundraising goal this month and we can't afford to come up short. But when a reader recently asked how being a nonprofit makes Mother Jones different from other news organizations, we realized we needed to lay this out better: Because "in absolutely every way" is essentially the answer.

So we tried to explain why your year-end donations are so essential, and we'd like your help refining our pitch about what make Mother Jones valuable and worth reading to you.

We'd also like your support of our journalism with a year-end donation if you can right now—all online gifts will be doubled until we hit our $350,000 goal thanks to an incredibly generous donor's matching gift pledge.

payment methods

A BETTER WAY TO DO THIS?

We have an ambitious $350,000 online fundraising goal this month and we can't afford to come up short. But when a reader recently asked how being a nonprofit makes Mother Jones different from other news organizations, we realized we needed to lay this out better: Because "in absolutely every way" is essentially the answer.

So we tried to explain why your year-end donations are so essential, and we'd like your help refining our pitch about what make Mother Jones valuable and worth reading to you.

We'd also like your support of our journalism with a year-end donation if you can right now—all online gifts will be doubled until we hit our $350,000 goal thanks to an incredibly generous donor's matching gift pledge.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate