US Budget Fine Print -- Reasons For Taxing The Rich

Fine Print From US budget

"While middle-class families have been playing by the rules, living up to their responsibilities as neighbors and citizens, those at the commanding heights of our economy have not. They have taken risks and piled on debts that while seemingly profitable in the short-term, have now proven to be dangerous not only for their individual firms but for the economy as a whole. With loosened oversight and weak enforcement from Washington, too many cut corners as they racked up record profits and paid themselves millions of dollars in compensation and bonuses. There's nothing wrong with making money, but there is something wrong when we allow the playing field to be tilted so far in the favor of so few."

In 2009 and 2010, it doesn't see any income from this provision, although we can't tell on first quick read if that's because the taxes wouldn't kick in until later or if it's an acknowledgment that there won't be much in the way of profits in the private equity and hedge fund industries for the next couple of years.

In 2011, the budget says this change would decrease the deficit by $2.74 billion. That would accelerate to $4.35 billion in 2012. For the period from 2010 to 2019 in total, the budget foresees a total decrease to the deficit of $23.89 billion from this change.