WASHINGTON, Feb 2 (Reuters) - U.S. President Barack Obama unveiled his fiscal year 2016 budget on Monday amid pushback from the Republican-controlled Congress over many of his policies.
Although it is unlikely Congress will pass many of the spending proposals, the $3.99 trillion budget outlines the president’s priorities for his final two years in office.
Here are some of the proposals in Obama’s budget, many of which focus on economic mobility for low- and middle-income earners.
* Permanently reverse the across-the-board spending cuts known as sequestration that went into effect in 2013. Congress shielded portions of the budget from sequestration in fiscal years 2014 and 2015 but spending levels are due to plunge in 2016 without action.TAX REFORM:
* Capital gains increase: Raise the top rate at which capital gains and dividends are taxed from 23.8 percent to 28 percent for the highest-income households; trigger capital gains taxes for bequests to heirs, with some exceptions.
* Second earner credit: Would benefit households where both spouses work.
* Expanding childcare credit: Triple the maximum credit allowed for families with children under 5 to make childcare more affordable. INFRASTRUCTURE:
* Transportation investment: Includes $478 billion over six years to the Highway Trust Fund for surface transportation.FOREIGN PROFITS TARGETING:
* Establish a 19 percent minimum tax on foreign earnings, after which earnings could be reinvested in the United States without additional tax.
* Limit “earnings stripping,” in which corporations shift U.S. profits into countries with lower tax rates. DEFICIT REDUCTION:
* Foresees the federal government spending $474 billion more than it takes in during fiscal year 2016 while reducing the national deficit by $1.8 trillion over 10 years through long-term reforms to healthcare, taxes and immigration. WALL STREET REFORM:
* Financial institution fee: Raise an expected $112 billion over 10 years by imposing fines on large financial institutions carrying excessive leverage as determined by a seven-point test.
* Increased oversight: Boost funding for two market regulators. The Securities and Exchange Commission would receive $1.7 billion, a 15 percent increase, and the Commodity Futures Trading Commission would receive $322 million, a 29 percent increase. DEFENSE SPENDING:
* Includes $612 billion in discretionary funding for national defense, a 4.5 percent increase, the first after five years of decline.
* Dedicates $14 billion to strengthen U.S. cyber security defenses. Calls for deployment of more intrusion detection and prevention capabilities, greater sharing of data with the private sector and other countries, and more funding to beef up the U.S. government’s ability to respond to attacks. (Reporting By Julia Edwards in Washington)