President Obama has claimed the government can generate enough new revenue by taxing “millionaires and billionaires,” hedge funds and corporate jet owners. But these are not the only tax proposals on the table. Hundreds of other deductions, credits and exclusions for both individuals and corporations are also at risk to be cut.
Capital gains A bipartisan deficit-reduction plan being discussed in the Senate may end the preferential tax treatment of capital gains and dividends. While the proposal from the Gang of Six does not mention capital gains or dividends, policy experts say that the message seems clear from the numbers. In order to make up the revenue needed and offset lowering tax rates for high earners, investment taxation is the obvious target. Alex Brill, a research fellow at the American Enterprise Institute and a former chief economist at the House Ways and Means Committee under Republican Chairman Bill Thomas, told Bloomberg News: “As I read between the lines of the plan, the cap gains and dividend rates are likely to rise.” Richard Drew/AP Buy Photo