Barack Obama Campaign Promise No. 39:
In the Works

Bookmark this:

Phase out exemptions and deductions for higher earners

Restore the phaseouts of personal exemptions and itemized deductions for those making more than $250,000 (couples) or $200,000 (single), with threshholds indexed for inflation.

Sources: Obama campaign interviews with the Tax Policy Center

Subjects: Taxes

Updates:

Obama budget proposes to curtail exemptions and deductions

Updated: Thursday, February 26th, 2009 | By Angie Drobnic Holan

President Obama's Office of Management and Budget unveiled a broad outline of its plans for the 2010 budget on Feb. 26, 2009, highlighting investments in health, energy and education.

To pay for some of those items, Obama proposed allowing the Bush tax cuts to expire as scheduled on people who make more than $200,000 and couples who make more than $250,000. For those same income levels, he plans to restore phaseouts for personal exemptions and deductions. This would limit the amount that higher earners could write off as tax deductible or tax exempt. According to the budget documents, this change would begin in 2011.

Obama's budget still has to be approved by Congress, where Republicans are likely to oppose any effort to let the Bush tax cuts expire. So for now, we rate this promise In the Works.

 

Sources: Office of Budget and Management, Budget Documents for Fiscal Year 2010 , accessed Feb. 26, 2009 Office of Budget and Management, Summary Tables , Table S-6, page 123, accessed Feb. 26, 2009 C-SPAN, Peter Orszag briefs reporters on the 2010 budget plan , accessed Feb. 26, 2009

Advertisement
How to contact us:

We want to hear your suggestions and comments. For tips or comments on our campaign promise database, please e-mail the Obameter. If you are commenting on a specific promise, please include the promise number. For comments about our Truth-O-Meter or Flip-O-Meter items, please e-mail the Truth-O-Meter. We’re especially interested in seeing any chain e-mails you receive that you would like us to check out. If you send us a comment, we'll assume you don't mind us publishing it unless you tell us otherwise.

Browse the The Truth-O-MeterTM:
Browse The Obameter:
Subscribe:

Keep up to date with Politifact:

Politifact