Thu, Mar 06, 2014 - Page 7 News List

Obama’s 2015 budget sparks backlash

ELECTION MOTIVATION?The proposal would scale back tax breaks for wealthy people to expand welfare spending, but Republicans said it was a ploy to gain votes

Reuters, WASHINGTON

The expansion, which would cost US$60 billion, would be funded by closing loopholes such as the tax break for “carried interest,” profits earned by wealthy investors who run private equity and other funds.

Obama has long sought to end that tax break, which allows financiers to treat their income as capital gains, making it subject to a tax rate of 20 percent instead of the nearly 40 percent rate on ordinary income paid by the highest earners.

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