No firm details yet, but the White House acknowledged moments ago that the president’s jobs plan includes major tax hikes in the form of eliminating the itemized deductions that many Americans take on their tax returns. For instance, Fox reports that the president’s plan eliminates the deductions for state and local taxes paid. The administration estimates that the new taxes would raise $400 billion of the $447 billion price tag of the jobs package.
Developing…more detail as it become available.
Update: Fox is also reporting that these tax hikes were on the table when the Democrats controlled both houses of Congress, and failed to pass.
Update: A few details at Business Insider—
White House Office of Management and BudgetDirector Jack Lew outlined President Barack Obama’s plan to pay for his $447 billion jobs plan — mostly through tax increases.
Lew said itemized tax deductions and exemptions for those making more than $200,000, and families earning more than $250,000 would be cut — raising about $400 billion to pay for Obama’s jobs plan over 10 years. This includes a change to bring more hedge fund earnings under normal tax rules as opposed to capital gains rates.
The new tax rules would not take effect until January 2013, Lew said. Obama is not offering any spending cuts to pay for the jobs plan.
The rest of the total would be raised by cutting subsidies for the oil and gas industries to bring in another $40 billion, and change the depreciation rules for corporate jets. All told, Obama would cut $467 billion to pay for his plan.
And the White House says that it doesn’t anticipate any job losses will occur because of these tax hikes. Really.
Update: This plan gives us yet another window into the president’s worldview. He will not propose a dime in cuts to government spending, but will levy tax hikes that will force business to cut their spending. And he expects this to create as many as 1.9 million jobs. Barack Obama is the poster child for tax and spend liberalism, which is already a proven failure. These tax hikes will go nowhere in Congress, but that’s probably by design, as Obama intended from the beginning for the American Jobs Act to fail in Congress and become his chief talking point to use in his re-election bid. The plan isn’t and never was about jobs or leadership, it’s just about saving his own job.