Expanding tax break
Obama’s budget calls for helping low-wage earners by expanding the Earned Income Tax Credit for people without children. It also would expand early childhood education and provide teachers to 500 school districts, allot more money for road-building and invest more money in research.
Rep. Paul Ryan, R-Wis., the chairman of the House Budget Committee, called the president’s budget “a campaign brochure.” Ryan is expected to offer a blueprint addressing poverty programs that he all but deemed a failure in a report released on Monday.
However, Congress is unlikely to address sweeping proposals to address tax reform or entitlements this year.
Obama has called for repealing tax breaks for oil and gas companies every year since he became president, and he did so again this year, with no prospect for success.
American Petroleum Institute president and CEO Jack Gerard said, “The average oil and natural gas job pays about seven times the federal minimum wage, and the natural gas renaissance has led to lower CO2 levels.
“Higher energy taxes would set back the president's own goal of addressing income inequality and undermine his ability to achieve his climate goals.”
The president’s budget calls for major changes in the corporate and individual tax code and would raise about $1 trillion in new revenue. His proposals would raise $651 billion a year by limiting the tax deductions of high-income earners and requiring those making more than $1 million to pay at least 30 percent in taxes.