Factbox - Proposals in Obama's $3.99 trillion annual budget

By Julia Edwards

WASHINGTON (Reuters) – U.S. President Barack Obama unveiled his fiscal year 2016 budget on Monday amid pushback from the Republican-controlled Congress over many of his policies.

Although it is unlikely Congress will pass many of the spending proposals, the $3.99 trillion (3 trillion pound) budget outlines the president’s priorities for his final two years in office.

Here are some of the proposals in Obama’s budget, many of which focus on economic mobility for low- and middle-income earners.

ENDING SEQUESTRATION: * Permanently reverse the across-the-board spending cutsknown as sequestration that went into effect in 2013. Congressshielded portions of the budget from sequestration in fiscalyears 2014 and 2015 but spending levels are due to plunge in2016 without action.TAX REFORM: * Capital gains increase: Raise the top rate at whichcapital gains and dividends are taxed from 23.8 percent to 28percent for the highest-income households; trigger capital gainstaxes for bequests to heirs, with some exceptions. * Second earner credit: Would benefit households where bothspouses work. * Expanding childcare credit: Triple the maximum creditallowed for families with children under 5 to make childcaremore affordable. INFRASTRUCTURE: * Transportation investment: Includes $478 billion over sixyears to the Highway Trust Fund for surfacetransportation.FOREIGN PROFITS TARGETING: * Establish a 19 percent minimum tax on foreign earnings,after which earnings could be reinvested in the United Stateswithout additional tax. * Limit “earnings stripping,” in which corporations shiftU.S. profits into countries with lower tax rates. DEFICITREDUCTION: * Foresees the federal government spending $474 billion morethan it takes in during fiscal year 2016 while reducing thenational deficit by $1.8 trillion over 10 years throughlong-term reforms to healthcare, taxes and immigration. WALLSTREET REFORM: * Financial institution fee: Raise an expected $112 billionover 10 years by imposing fines on large financial institutionscarrying excessive leverage as determined by a seven-point test. * Increased oversight: Boost funding for two marketregulators. The Securities and Exchange Commission would receive$1.7 billion, a 15 percent increase, and the Commodity FuturesTrading Commission would receive $322 million, a 29 percentincrease. DEFENCE SPENDING: * Includes $612 billion in discretionary funding fornational defence, a 4.5 percent increase, the first after fiveyears of decline. CYBER SECURITY: * Dedicates $14 billion to strengthen U.S. cyber securitydefences. Calls for deployment of more intrusion detection andprevention capabilities, greater sharing of data with theprivate sector and other countries, and more funding to beef upthe U.S. government’s ability to respond to attacks.

(Reporting By Julia Edwards in Washington)

Factbox - Proposals in Obama's $3.99 trillion annual budget