–Add’l Info On Corp. Tax Reform To Be In Obama Deficit Plan Next Week
–To Propose ‘Carried Interest’ Lose Capital Gains Rate

By Brai Odion-Esene

WASHINGTON (MNI) – President Barack Obama is including offsets in
his American Jobs Act that exceed the cost of the $447 billion package,
done to ensure the bill’s price tag is still covered even after it is
analysed by number crunchers on Capitol Hill, the White House said
Monday. q

Jack Lew, director of the Office of Management and Budget told
reporters that, “In the aggregate these provisions raise $467 billion,”
and it intentionally “overachieves” vs. the jobs package.

“As we go through the process of having the scoring done on the
Hill, we built in a cushion for the differences that happen,” Lew said.

He said the specific ‘pay-fors’ in the jobs bill are a series of
tax provisions that the White House has been advocating for some time.
They are;

A limit on itemized deductions and certain exemptions for
individuals earning over $200,000 and couples earning over $250,000.
That will raise roughly $400 billion over 10 years, Lew said.

Another provision in the jobs bill would treat carried interest as
ordinary income, rather than taxing it at a capital gains rate, which
Lew said would raise $18 billion.

Then there are a number of oil and gas industry-related provisions,
taking away their special treatment, that the OMB chief said would
collectively raise $40 billion.

Finally Obama is proposing a change to the corporate jet
depreciation rule, pushing for the depreciation of both corporate and
commercial planes to occur over the same time period — five years.
That, Lew said, would raise $3 billion.

The U.S. Treasury at some point soon is expected to release a White
Paper on corporate tax reform, and while Lew would not be drawn on what
the administration will propose, he did say there will be “additional
discussion of our corporate tax plan in the package next week.”

Obama has said he will unveil a “more ambitious” deficit reduction
plan next week Monday, and Lew warned that not just the wealthy will be
required to give up something. “You’ll see that there’s shared
sacrifices that are substantially broader than just the wealthiest of
Americans,” he said.

He said Obama’s proposals will achieve “beyond” the targets of the
bipartisan Select “super committee” tasked with additional deficit
reduction, fully pay for the jobs package “and fully stabilize the
deficit and the debt in this 10-year window.”

However, the super committee is not required to accept the
administration’s proposal during its deliberations, Lew said. “They will
make some choices as to how they want to approach deficit reduction.”

** Market News International Washington Bureau: 202-371-2121 **

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