On Monday February 13, 2012, the Administration submitted its fiscal 2013 budget proposal to Congress. The budget proposal contains changes to spending and deficit projections. As is true with all budget proposals, it includes an outline of future tax proposals by the administration. Here are some of the highlights of the tax proposals:
The administration is proposing a 30 percent minimum tax rate for households making more than $1 million a year. This is a variation of the so-called "Buffett Rule," named after the legendary investor, Warren Buffett. The Administration's budget also would allow the 2001 and 2003 tax cuts expire and would also eliminate other tax breaks for the high income households. Details of these proposals have not been released.
Finally, according to Reuters, an Administration official has provided that an initiative to lower the corporate tax rate will be unveiled later this month. The current top corporate tax rate of 35 percent is one of the highest rates amongst the industrialized nations and is expected to be lowered to a rate below 30 percent.