President Obama's Weirdest New Taxes

Citing statistics on smoking-related deaths, Treasury writes, "Excise taxes, levied on manufacturers and importers of tobacco products, are one of the main ways that policymakers can affect tobacco production and consumption."

4. Corporate Jets

Perhaps a dead horse by now, Obama is still beating it.

The so-called "loophole for corporate jets" works like this: Companies can write off the value of their equipment as it depreciates - to encourage investment, the government lets businesses recoup some cost of buying equipment by letting them count its depreciation against their income. The IRS has a schedule for how fast different kinds of equipment "depreciate," and how much of their value can be written off when.

When it comes to airplanes owned by businesses, commercial and freight-carrying planes can be written off in full after seven years. Planes that aren't used for those purposes - corporate jets, crop-dusters, and planes used for firefighting, for instance - can be written off after five years.

Under Obama's budget proposal, noncommercial passenger aircraft are lumped in with commercial and freight planes, meaning businesses can deduct the value of their corporate jets after seven years, not five.

5. Businesses Can't Deduct Punitive Damages

Say you're a business, someone wins a lawsuit against you, and you're required to pay damages. You can write them off.

Not so, under Obama's budget proposal.

The White House plan would not only prevent businesses from deducting punitive damages from their taxable income, it would tax damages paid out by insurers, too: If a business takes out an insurance policy for some kind of liability, and that insurer ends up paying out damages on behalf of the company under its policy, those damages would be added to the business's taxable income.

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