Transcript: White House official on tax increases for deficit reduction proposed in the FY2014 budget

Edited by Jenny Jiang

Partial transcript of remarks by a White House official on tax increases for deficit reduction proposed in the FY2014 budget. The press briefing was held on April 10, 2013.

Question:
You said the total revenue increase for deficit reduction is $580 billion. Could you say how much total revenue would be increased to pay for other programs that you’re proposing? For example, the early childhood education and so on. How much – excluding the revenue increases from 28% cap and the Buffett rule and so on would you apply to investments?

Gene Sperling, Director of the White House National Economic Council:
So, as Jeff said, the budget offers – keeps on the table the last offer to the Speaker – compromise offer, which had $580 billion of revenue from high-income individuals. We then, as you know, put additional measures in our plan that could be – that Boehner offer not conditioned on but what we think would represent the kind of balanced economic strategy that we’ve discussed.

Most of the times that we – almost all the times that we have additional revenues beyond that are to actually pay for other tax relief. You know, for example, we even have a reserve – one thing that’s in our plan mention is we do talk about extending for the additional 5 years the Obama increases in the Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity Tax Credit, the College Tax Relief. In doing that, we believe that should be part of the baseline. So if people in a negotiation accepted that that was part of the baseline, that would not have to be paid for. But if somebody said – they took a different view – we put in $150 billion as a reserve that could help pay for them. So that’s revenue there to just be fiscally conservative to say that we believe in extending those important tax incentives and that if people believe they should be paid for as opposed to being part of the baseline…So those are revenues that are really just in reserve if they were needed to pay for that. Other revenues are for other of our tax cuts that we have going forward.

The one place where we explicitly raised revenues to do a new investment is what Cecilia talked about – it is the tobacco tax to pay for early childhood [education]. That is a place where we are making a decision that we believe that additional revenue is justified for the positive that it serves in terms of early childhood and the deterrent effect that it has on smoking.

Question:
Is that the biggest – aside from tobacco and the deficit reduction tax proposals that you have – is that the biggest new revenue provision that you have even among those that are used to offset other tax cuts for middle-class?

Gene Sperling, Director of the White House National Economic Council:
I believe so, but I’ll check for you to make sure.

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2 Comments on “Transcript: White House official on tax increases for deficit reduction proposed in the FY2014 budget

  1. Pingback: Transcript: White House officials on early childhood education & the tobacco tax proposed in the FY2014 budget | What The Folly?!

  2. Pingback: Transcript: Senior White House officials on corporate tax reforms proposed in the FY2014 budget | What The Folly?!

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