Feb 2 (Reuters) – U.S. President Barack Obama faces major hurdles to get his $3.8 trillion budget plan through Congress. Obstacles include members of his own — at times fractious — Democratic Party.
Obama proposed and Congress ignored many of the same policies last year, though expiration of individual tax cuts enacted by former President George W. Bush at the end of this year virtually ensures individual tax issues will be addressed.
Below is a summary of roadblocks facing some of Obama’s key proposals.
TAX INCREASES FOR THE WEALTHY
Fulfilling a campaign pledge, Obama proposed extending the Bush tax cuts for individuals earning less than $200,000 and couples making less than $250,000. For those making more than that, Obama proposed letting the cuts expire. That would bring the top two income tax brackets back to 39.6 and 36 percent, from 35 and 33 percent respectively.
Some fiscally conservative Democrats in the House of Representatives have called for keeping the rates lower for at least two years to sustain the economic recovery.
Democratic Senate and House leaders are generally believed to back letting the lower rates expire for the upper income groups, although they have not addressed the issue recently.