Budget Proposal Relies on Tax Proposals Previously Rejected by Congress

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President Obama's $3.7 trillion budget proposal for fiscal year 2012 relies on dozens of ideas that have been previously rejected by a Democrat-led Congress and will face an even tougher road ahead under a new, larger Republican presence in the Capitol, lawmakers say. In his budget submission, Obama renews his pledge to extend the 2001 and 2003 tax cuts for only middle-income families at a cost of $1.25 trillion over the 2012-2021 period, as well as extend the estate tax law that was in place for 2009, when the exemption level was $3.5 million and the tax rate was 45 percent, at a cost of $270 billion over 10 years.