President Obama on Feb. 2 submitted a budget proposal for the government's 2016 fiscal year that includes a wide range of tax provisions designed to raise revenue, including items from previous budgets and proposals presented in the 2015 State of the Union address.
Notable proposals from the budget would do the following:
- Impose a one-time 14% tax on unrepatriated foreign income
- Increase the capital gains rate from 23.8% to 28% for individuals in the top tax bracket
- Modify estate and gift taxation to generally require that property gifted or bequeathed at death to someone other than the decedent's spouse be treated as sold for its fair market value, subject to certain exceptions
- Impose a fee on large financial institutions
- Limit the accrual of tax-favored retirement benefits
The budget proposal also includes a number of proposals to "reduce the value of tax expenditures" included in previous budgets, or based on provisions included in tax reform discussion drafts.
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