President Barack Obama on September 12 sent to Congress legislative language and analysis for the $447 billion "American Jobs Act" that he proposed last week, asking Congress to adopt $467 billion in revenue raisers that would more than offset the cost of the package. The largest single revenue offset would limit itemized deductions at the 28-percent tax rate for upper-income individuals; White House officials estimate that the proposal would raise $400 billion over ten years. Other proposed revenue raisers include the repeal of certain oil and gas provisions, a change in the tax treatment of carried interest, a change in depreciation rules for general aviation aircraft, and change in the tax treatment of dual capacity taxpayers. In general, the Administration is proposing that its revenue-raising provisions should be effective beginning in 2013.
The Obama Administration also is proposing that Congress increase the deficit reduction target for the Joint Select Committee on Deficit Reduction by an amount sufficient to offset the cost of the President's jobs bill. As a result, if Congress does not accept the revenue offsets proposed on September 12 by the Administration, the Deficit Reduction Committee would be responsible for finding alternative revenue sources or spending reductions to offset the proposed jobs creation provisions.