The Obama administration has proposed a $467-billion package of savings, including changing how deductions count for wealthy income-tax payers, to offset the cost of its proposed jobs package, officials announced Monday.
At a televised briefing, Jack Lew, director of the White House Office of Management and Budget, outlined the package, which is being sent to Congress along with the $447-billion jobs bill. The extra $20 billion is designed to create a cushion to make sure the jobs plan is fully paid for as the president has promised, Lew said.
“In order to invest in jobs and growth, we're going to have to pay for it,” Lew told reporters at the news session, which included White House Press Secretary Jay Carney.
The proposal includes limiting some deductions for those earning at least $200,000 a year, or for families, $250,000, a change that would save $400 billion over 10 years, Lew said. It also includes changing the tax rules on carried interest to treat it as ordinary income, removing some tax breaks for the oil and gas industry, and changing how depreciation is calculated for aircraft, he said.