As much as $112 billion will be shifted from the top 1% of taxpayers to the middle-class and poor, thanks in large part to Obama’s choice to allow tax cuts implemented under President George W. Bush to expire. Also, the president wants to impose a 28% value limitation on itemized deductions which will impact top earners.

 

The Tax Foundation says Americans in the bottom 10% percent will benefit the most from the budget plan, receiving $8.7 billion in federal spending benefits. These families will receive on average an extra $494 in income redistribution.

-Noel Brinkerhoff

 

Obama Budget Would Increase Income Redistribution from Top 1 Percent of Taxpayers by $112 Billion (Tax Foundation)

Distributional Analysis of President Obama’s Fiscal Year 2011 Budget Policies (Tax Foundation)