Obama 2015 budget seeks $60 billion tax credit expansion: White House

Obama comments to reporters on the situation in Ukraine before meeting with Israel's Prime Minister Netanyahu in the Oval Office of the White House in WashingtonBy Mark Felsenthal and Jeff Mason WASHINGTON (Reuters) – President Barack Obama will strike a firmly populist tone in his 2015 budget plan on Tuesday, proposing to pay for an expansion of a popular tax credit for the working poor by eliminating tax breaks claimed by wealthy Americans. The proposal to expand one of the most popular U.S. government poverty reduction programs, the Earned Income Tax Credit, would cost $60 billion, a modest amount in a budget in which the president has $1.014 trillion in spending to parcel out, the White House said. Obama would pay for the tax credit expansion by closing tax loopholes used typically by wealthy investors or employees of professional service companies such as law, consulting or lobbying firms. Even so, Obama’s budget recommendation stands little or no chance of being approved as is by Congress, where Republicans, who control the House of Representatives, disagree with the president’s policy priorities, such as spending government money on job training.

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