Obama’s renewed call for a rewrite of the corporate part of the tax code wouldn’t raise additional revenue for the government. Last year, the administration released a framework that sought to lower the corporate tax rate to 28 percent for most companies and 25 percent for manufacturers.

The budget plan doesn’t specify all the tax breaks that would need to be eliminated or curtailed to meet those rate targets. The revenue target assumes -- as does the House Republican budget -- that tax breaks scheduled to expire at the end of 2013 would lapse as scheduled. That means extending any of them, such as the research and development tax credit, would need to be offset with savings elsewhere.

Lower-Income Households

The budget plan would raise taxes for many lower-income households. Obama’s proposal to change the inflation gauge to the chained Consumer Price Index would make the standard deduction, personal exemption and tax bracket thresholds grow more slowly than projected, causing more income to be taxed at higher rates.

Obama proposes a $78 billion increase in tobacco taxes. Other new items in the budget include a $3 million cap on an individual’s tax-preferred retirement accounts and a requirement that people who inherit individual retirement accounts take taxable distributions over five years instead of their projected life span.

Capping Breaks

The largest single tax increase in Obama’s budget, raising $529 billion over 10 years, would set a 28 percent cap on the value of tax breaks such as the mortgage interest deduction, the exclusion for employer-provided health insurance and municipal bond interest.

The cap would affect anyone in a marginal tax bracket higher than 28 percent, which ends at $223,050 of taxable income for married couples and $183,250 of taxable income for single taxpayers.

The budget plan reprises the president’s proposals aimed at the $3.7 trillion state and local government bond market. It seeks to limit the tax exemption on interest income reaped by the highest-earning investors, a step local governments say would hit them with higher borrowing costs.

The plan also seeks to create new bonds, similar to the now-lapsed Build America Bonds program, to subsidize spending on public projects, including the new school buildings.