Revenue gain: $42 billion.
* The estate tax would be restored to its 2009 level. In 2009, the exemption was only $3.5 million, and the tax rate was 45 percent.
At present, there's an exemption from taxes for estates up to $5.1 million, and the tax rate on the remainder is 35 percent.
Revenue gain: $119 billion.
As intended, the rich bear the burden of these increases.
The top 1 percent, with incomes beginning at $597,000, would pay an average $72,000 in higher taxes, representing a 5.1 percent decline in their after-tax income, the TPC has estimated.
The wealthiest 0.1 percent (included in the top 1 percent), with a minimum income of $2.9 million, would pay an extra $403,000, a 6.6 percent drop in their after-tax income, says the TPC.
The richest 95th to 99th percent of taxpayers (income threshold: $252,000) would pay an average of $5,765 more.
Though significant, these increases would roughly restore the tax burden on the rich to where it was before the Bush tax cuts in 2001 and 2003, other TPC estimates suggest. The top rate was then 39.6 percent, the rate on capital gains was 20 percent and the estate tax was higher than now.
Possibly altering this conclusion are tax increases on the wealthy - the same income definitions - passed as part of Obamacare. The tax on wage and salary earnings was raised 0.9 percentage points; on capital gains and dividends, it was increased 3.8 percentage points.
"With state income taxes, top marginal rates will now be approaching 50," says Marron. "This creates an incentive for the wealthy to spend more time with their lawyers and accountants to change how they structure their activities [to minimize taxes]."
To reduce this, many economists favor limiting tax breaks to keep rates low. Republicans have been more open to this approach, because (they argue) lower rates might mitigate the adverse effects of higher tax burdens on the economy.
Individuals would still have incentives to work hard; they'd keep a higher percentage of any increase in earnings. Similarly, small businesses - which often pay taxes at personal income rates - would have incentives to hire.
The TPC estimated that limiting taxpayers' itemized deductions - including mortgage interest payments, charitable contributions, and state and local taxes - to $17,000 could raise $1.7 trillion over a decade.
Marron points out, however, that some resulting tax increases would fall on those below Obama's $200,000/$250,000 threshold.
There's plenty left for negotiation.