His plan would tax the profits-based compensation paid to private equity managers at ordinary income rates instead of a preferred 15 percent rate and curtail tax breaks for corporate jets and oil and gas companies.
Obama also reintroduced previous years' proposals to limit companies' ability to defer taxation on income earned overs He proposed new tax breaks for business that hire more workers and for manufacturers.
The administration proposed increasing the fee airline passengers pay to fund the Transportation Security Administration to $5 per one-way flight, increasing 50 cents each year to $7.50 in 2018. The fee is currently $2.50 a flight segment, or $2.50 for a direct flight or $5 for a one-way trip with a connecting airport.
The fee, installed to pay the cost of added security after the Sept. 11 terrorist attacks, recovers 43 percent of aviation security costs, according to the budget plan. The new fee would collect $9 billion over five years and $25.5 billion over 10 years. About 70 percent of the money would be used to reduce the budget deficit.
The budget plan anticipates collecting $1.4 billion in fees for Food and Drug Administration drug reviews and inspections of drugmakers' plants and food production. That includes a new fee for reviewing generic drugs that would raise about $300 million.
Obama is proposing an overhaul of the corporate tax system that would eliminate tax benefits to lower the corporate rate from its current maximum of 35 percent. The budget plan doesn't include details on the rate the administration would prefer or which tax provisions it would eliminate.
The administration plans to release more details on its corporate tax revisions this month.