If Congress were to "send a portion of the American Jobs Act, the president would of course not veto it," Carney told reporters traveling with Obama to an event to promote it in Ohio. "He would sign it and then he would return to press the Congress to get the job done."
Deduction Cap
The biggest revenue-raising proposal in the jobs package -- about $400 billion -- would cap at 28 percent itemized deductions and some exclusions for individuals earning more than $200,000 a year and married couples earning more than $250,000.
Andrew Schulz, vice president for legal and public policy at the Council on Foundations in Arlington, Virginia, drew a distinction between charitable contributions that don't directly benefit a taxpayer and deductions for items such as mortgage interest.
"This is the very last moment in time that you would think it would be productive to limit the funding of the charitable sector," he said in an interview.
Municipal bond income is included in the cap under the new proposal, marking the administration's first attempt to curb that benefit. That could hurt demand for state and local government securities, said lobbyists who work in the public finance sector.
Earlier Proposals
The administration has previously proposed caps that focused only on itemized deductions, meaning that the highest- income taxpayers would receive a smaller federal break on their mortgage interest, state and local taxes and charitable contributions.
The new version also imposes a limitation on so-called above-the-line deductions and certain exclusions, including income earned outside the U.S. and employer-provided health insurance. Affected above-the-line deductions include breaks for moving expenses, higher education expenses and contributions to health savings accounts. The $400 billion revenue estimate is 25 percent higher than the administration's $321 billion estimate for the itemized deduction cap, indicating the scope of the expanded proposal.
Industry Reaction
Industry groups affected by the revenue-raising proposals said they plan to lobby heavily against them.
"Proposals to raise taxes on carried interest have consistently been rejected for over four years because raising taxes on investments would only sideline employers and investors and create further uncertainty in an already struggling economy," Steve Judge, interim president and chief executive officer of the Private Equity Growth Capital Council, the industry's Washington-based trade group, said in a statement.
The oil and gas industry would face $40 billion in new taxes over the next decade. Obama's budget proposal included limits on the industry's ability to claim domestic manufacturing deductions for drilling. Companies including Exxon Mobil Corp. and Royal Dutch Shell Plc have opposed the administration's proposal.