President Obama's proposed tax changes amount to a $2.1 trillion increase in federal taxes over the next 10 years, according to an official estimate released Thursday.
The Joint Committee on Taxation, the congressional body tasked with providing nonpartisan estimates of tax legislation, released an analysis Thursday finding that Obama's fiscal 2017 budget proposal included a long list of taxes amounting to just over $1 trillion in the next five years and $2.1 trillion over 10 years.
In comparison, the federal government is expected to take in $42 trillion in revenue over the same period without any changes to law.
Thursday's report clarifies the extent of the numerous tax changes advocated by the president because they are not clearly delineated in the White House budget. When the budget proposal was released at the beginning of February, congressional Republicans had said it contained $3.4 trillion in tax increases.
One of the biggest revenue-raisers in Obama's budget is his proposal to overhaul the taxation of U.S. corporations' overseas income. He would institute a one-time 14 percent tax on all earnings currently held by companies beyond the Treasury's reach overseas, netting the government $194 billion. Then, he would lower the tax rate applying to foreign income to 19 percent, allowing credits for taxes paid to foreign governments, but requiring companies to pay those taxes as the money was earned. That tax would raise nearly $300 billion.
Obama also would raise a lot of money from high-income earners. By limiting how many deductions they can claim, raising capital gains taxes and instituting the "Buffett Rule" that would set a minimum tax rate on high incomes, Obama would raise taxes by more than $800 billion.
A financial fee levied on big banks would raise another $111 billion. The proposed oil tax of roughly $10 a barrel, new this year, would yield another $273 billion for the Treasury.
The budget also included dozens of proposed tax breaks, including $250 billion of credits and other benefits aimed at lowering the tax bills of middle-class families or subsidizing work.
The Joint Committee on Taxation analysis concerns the tax provisions in the president's budget. The Congressional Budget Office, a separate agency, will release its own analysis of the spending provisions on March 29.