At that threshold, the proposal would affect far less than 1 percent of IRA and 401(k) account holders, according to estimates from the Employee Benefit Research Institute. Depending on how the threshold is adjusted in future years, however, that percentage could rise significantly.
Raise tax on cigarettes and other tobacco products: To fund expanded access to pre-K education, an idea raised in the State of the Union address, Obama is proposing a new federal tax on cigarette and other tobacco products.
It won't be the first time. In 2009, he signed into law a federal tax increase on cigarettes to help pay for an expansion of the State Children's Health Insurance Program, which provides health care for 8 million children.
Raise tax rate on investment fund manager income: Managers of private equity, venture capital and hedge funds are taxed 20 percent on the portion of their compensation known as carried interest, essentially paying the long-term capital gain rate. Obama wants carried interest to be treated as ordinary income, a proposal he's made repeatedly. The result: fund managers could pay a rate as high as 39.6 percent, or more than 2.5 times the rate they pay now.
Reduce deficits by $1.8 trillion: Obama's debt reduction proposal comes straight from an offer he made to House Speaker John Boehner last year during their fiscal cliff negotiations.
The proposal would replace the automatic budget cuts that went into effect last month.
Close to $600 billion of the $1.8 trillion would come from new revenue -- specifically the cap on itemized deductions and the Buffett Rule.
The other $1.2 trillion would come from spending cuts: $200 billion from defense and nondefense programs on the discretionary side of the budget. Another $400 billion from Medicare and other federal health programs in ways that largely affect hospitals and drug companies. And $600 billion in cuts affecting non-health spending on things like agricultural subsidies and unemployment insurance.
The administration has made clear the president's deficit-reduction proposals are not a starting point for upcoming discussions. "I've already met Republicans more than halfway," Obama said Wednesday morning.
And officials made it clear there will be no future debt-reduction deal unless new revenue is included.
House Speaker John Boehner on Wednesday morning gave the president credit for including "some incremental entitlement reforms ... . But I would hope that he would not hold hostage these modest reforms for his demand for bigger tax hikes. Why don't we do what we can agree to do?"
Even if Republicans eventually agree to a revenue component, it is unlikely the president's proposals would be adopted wholesale. But if they were, his budget would bring total deficit reduction during his tenure to $4.3 trillion.