Obama releases budget details
Big tax cuts for low and middle-income earners
US President Barack Obama will cut taxes for middle-income earners by $1.8
trillion (£1.2 trillion) by extending cuts made in 2001 and 2003 to those on
under $250,000 a year.
Obama’s budget, recently approved by Congress, also expands the Earned Income
Tax Credit for American families with three or more children. It seeks to
tighten up the US tax code for corporations which invest overseas.
Earlier, the Treasury Department released tax reform proposals to tighten up
rules that allow multinationals to deduct foreign investment expenses in the US
before paying taxes on foreign profits. Obama also intends to tighten up foreign
tax credit rules.