Position Changed

Bloomberg's support for an end to tax cuts enacted by former President George W. Bush represented a change from his position last year, when he favored a two-year extension, Bloomberg said. His changed point of view came upon deciding fairness outweighed any impact it might have on New York City residents, Bloomberg said.

"Many of the people who would be affected are my constituents," Bloomberg said. "I'll probably be getting a few phone calls later today."

Eliminating the special tax treatment fund managers get on carried interest and regarding it as ordinary income would raise $18 billion over 10 years, Obama has said.

It would affect general partners in private equity and hedge funds, who may or may not contribute capital to the firm, and get most of their earnings as a share of the profits from the assets under management. This so-called carried interest is taxed at the capital-gains rate of 15 percent, not as ordinary income, which is as high as 35 percent.

2013 Expiration

The scheduled expiration of the Bush-era tax cuts in 2013 would mean that the tax rate on capital gains would revert to 20 percent from 15 percent. Dividends would again be taxed as ordinary income, with a top rate of 39.6 percent instead of 15 percent now.

Individuals earning more than $200,000 in 2013 and married couples earning more than $250,000 would face a 0.9 percent payroll tax increase and a 3.8 percent tax on a portion of net investment income, both linked to the 2010 health-care law.

Further in 2013, millionaires and other high-income taxpayers face a scheduled return of limits on itemized deductions and personal exemptions.

Tax Breaks

Republicans in the U.S. House of Representatives have begun discussing whether to extend dozens of tax breaks that expire Dec. 31, including benefits for corporate research and U.S.-based banks' overseas operations. A one-year extension of expiring provisions that have been routinely moved forward would cost the Treasury more than $30 billion in forgone revenue, congressional budget analysts have said.