{"id":475,"date":"2013-04-18T09:49:18","date_gmt":"2013-04-18T13:49:18","guid":{"rendered":"http:\/\/www.c2ig.com\/?p=475"},"modified":"2013-04-18T09:49:57","modified_gmt":"2013-04-18T13:49:57","slug":"presidents-2014-budget-cuts-state-local-grants","status":"publish","type":"post","link":"http:\/\/www.c2ig.com\/2013\/04\/presidents-2014-budget-cuts-state-local-grants\/","title":{"rendered":"President\u2019s 2014 Budget Cuts State, Local Grants"},"content":{"rendered":"
April 18, 2013<\/p>\n
On April 10,\u00a0 2013, the White House sent to Congress a $3.78 trillion budget proposal\u00a0 for fiscal 2014, which included a combination of revenue raisers and\u00a0 spending cuts designed to reduce the federal budget deficit by $1.8\u00a0 trillion by 2023. The largest revenue increase proposed in the budget\u00a0 would come from a reduction in the value of certain tax benefits,\u00a0 including tax-exempt interest on municipal bonds.\u00a0 Under the proposal a 28% limit would be imposed on the tax value of\u00a0 specified deductions and exclusions from adjusted gross income earners\u00a0 in the 33%, 35%, and 39.6% tax brackets. The administration estimates\u00a0 that this policy would generate $529.5 billion over the next ten years.\u00a0 The GFOA has consistently opposed any limitations on these provisions in\u00a0 the tax code because of their potential costs to state and local\u00a0 governments, and is encouraging our members to contact the White House\u00a0 and discuss their opposition and concerns with this proposal. Our\u00a0 Federal Liaison Center is providing a draft letter that members can use to send to the president on this issue.
\nBeyond\u00a0 these harmful provisions, the proposal also reintroduces a new America\u00a0 Fast Forward bonds program, which would provide 28% subsidies for\u00a0 governmental financing. The bonds could be used for all purposes for\u00a0 which tax-exempt bonds are currently eligible, including working\u00a0 capital, refundings, and eligible 501(c)(3) and other private-activity\u00a0 bond uses, subject to current state volume caps. New-money AFF bonds\u00a0 issues in 2014 and 2015 for school and university construction projects\u00a0 would be eligible for a 50% subsidy rate.
\nRegarding retirement\u00a0 savings, the budget proposal would limit the total amount an individual\u00a0 can accumulate for retirement in tax-favored accounts. In particular,\u00a0 the president\u2019s budget would cap such accumulated savings at the amount\u00a0 necessary to provide the maximum annuity permitted for a tax-qualified\u00a0 defined benefit plan under current law \u2013 currently an annual benefit of\u00a0 $205,000 at age 62. The cap would apply to individual accounts such as\u00a0 IRAs, 401(k)s, 403(b)s, and 457(b)s, as well as to defined benefit\u00a0 accruals.
\nIn other areas of note to state and local governments, the proposal would:<\/p>\n
GFOA News Letter April 18, 2013 On April 10,\u00a0 2013, the White House sent to Congress a $3.78 trillion budget proposal\u00a0 for fiscal 2014, which included a combination of revenue raisers and\u00a0 spending cuts designed to reduce the federal budget … Read more<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"acf":[],"_links":{"self":[{"href":"http:\/\/www.c2ig.com\/wp-json\/wp\/v2\/posts\/475"}],"collection":[{"href":"http:\/\/www.c2ig.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.c2ig.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.c2ig.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"http:\/\/www.c2ig.com\/wp-json\/wp\/v2\/comments?post=475"}],"version-history":[{"count":2,"href":"http:\/\/www.c2ig.com\/wp-json\/wp\/v2\/posts\/475\/revisions"}],"predecessor-version":[{"id":477,"href":"http:\/\/www.c2ig.com\/wp-json\/wp\/v2\/posts\/475\/revisions\/477"}],"wp:attachment":[{"href":"http:\/\/www.c2ig.com\/wp-json\/wp\/v2\/media?parent=475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.c2ig.com\/wp-json\/wp\/v2\/categories?post=475"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.c2ig.com\/wp-json\/wp\/v2\/tags?post=475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}