As was previewed in the President’s State of the Union Address, the Administration’s FY 2016 Budget includes approximately US$640 billion in proposed new revenue raisers, aimed largely at investment income, large financial institutions, and offshore income. This additional revenue would “invest in helping working families make their paychecks go further, preparing hardworking Americans to earn higher wages, and creating the infrastructure that allows businesses to thrive and create good, high-paying jobs.” Below we detail these proposals, dealing first with “adjustments to the baseline,” followed by revenue raising proposals, and finally with new tax reductions. While many Republicans have suggested that the President’s Budget is a “non-starter,” the Administration’s proposals will nevertheless serve to help frame further discussions on the budget process generally, as well as on tax reform. We begin first, however, with an executive summary of the President’s Budget as it relates to tax and revenue issues.
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