Obama Budget: How the President Plans to Raise $1.5 Trillion

U.S. President Barack Obama delivers remarks on his administration's 2013 budget at Northern Virginia Community College in Annandale. Source: Reuters/Jason Reed

President Barack Obama highlighted economic justice in his $3.8 trillion 2013 budget proposal, saying it aims to eliminate tax breaks and loopholes for millionaires.

The president said the proposed budget, released on Monday, is built around the idea that our country does best when everyone gets a fair shot, does their fair share, and plays by the same rules.

Republicans in Congress promise to oppose the plan with Senate Minority Leader Mitch McConnell, R-Ky., dismissing it as a charade and campaign document.

The proposed budget outlines a $4 trillion reduction in the deficit over the next 10 years, bolstered in part by $1.5 trillion in new tax revenue.

Here's how it breaks down:

• The Bush-era tax cuts for families making over $250,000 would be allowed to expire at the end of 2012.

• Invoking the Buffet Rule, those making $1 million or more will be taxed at a minimum rate of 30 percent, like most middle-class income-earners. Billionaire Warren Buffet inspired the tax plan when he pointed out that his income is taxed at roughly 18 percent, while his secretary is taxed at nearly 36 percent.

Rep. Paul Ryan, R-Wis., chairman of the House Budget Committee, had previously characterized the Obama tax ideas as class warfare in a September interview with Fox News.

This is not about class warfare, said Obama in a statement released with the budget proposal. This is about the nation's welfare. This is about making fair choices that benefit not just the people who have done fantastically well over the last few decades but that also benefit the middle class, those fighting to get into the middle class and the economy as a whole.