The Tax Policy Center has examined the key tax proposals in President Obama's 2013 budget. Separate discussions below describe each of the proposals including current law, proposed changes, and, when appropriate, the distributional effects. The budget as presented by the president lacks complete details on many of the tax proposals. Some provisions had virtually no detail, and our discussion of them is necessarily limited.
The budget assumes a baseline in which the 2001–03 tax cuts are permanently extended for all taxpayers, the estate tax applies at its 2012 level, and parameters for the alternative minimum tax (AMT) are permanently indexed for inflation from their 2011 levels. Those provisions would reduce revenues (or increase spending) by $4.5 trillion from 2013 through 2022.