President Obama’s State of the Union address on Jan. 27 outlined a broad agenda of tax provisions that are intended to breathe new life into the economy. The overall idea is familiar: take more from taxpayers at one end of the financial spectrum and distribute it to some at the other end, using a series a tax provisions.
Alert: According to The Wall Street Journal, Obama’s $3.8 trillion budget for the next decade will collect an additional $2 trillion in taxes from targeted groups, still leaving a debt of more than $8.5 trillion. The speech itself didn’t provide a lot of details, but the bare-bones ideas are beginning to be fleshed out.
Here are some highlights of Obama’s proposed changes.
Tax provisions affecting individuals
Making Work Pay Credit: This would be a one-year revival of the 2009 payroll credit designed to put an additional $400 in the hands of workers, by reducing payroll tax withholding. Obama says that th...(register to read more)