You are in: Home > Taxes

Tax Changes in the 2011 Budget Proposal

Use the tools below to copy the article in plain text form, or you can copy it as HTML, ready to copy and paste directly into a web page.

HTML
<html> <head> <title>Tax Changes in the 2011 Budget Proposal</title> </head> <body> <h1>Tax Changes in the 2011 Budget Proposal</h1> <div class="info">Author: <a href="http://www.goinglegal.com/author_1_249107.html">downeycocpa</a></div><div class="body">If you check out the White House's budget webpage, you may be a bit confused. In large letters it states "A<br /> new era of responsibility - the 2011 budget." However, the subsequent budget calls for $1.6 trillion in<br /> deficit spending next year. It certainly confused me and seemed paradoxical.<br /> The details of the budget are a bit ominous. It projects unemployment to remain at 10 percent this year,<br /> decrease to 9.2 percent in 2011 and further decrease to 8.2 percent in 2012. Furthermore, significant<br /> budget deficits are outlined for the foreseeable future.<br /> The budget includes both tax cuts to certain groups and tax increases to other groups. However, to deal<br /> with the bulging deficits, the tax increases greatly outweigh the tax cuts. The tax increases on upper<br /> income families alone is approximately $1 trillion over a ten year period. Here are some of the detailed tax<br /> proposals in the budget:<br /> Bush-era tax cuts<br /> - Most of the tax cuts implemented under the Bush administration are set to expire at<br /> the end of this year. President Obama's proposal is to extend the tax cuts to those earning under<br /> $250,000 ($200,000 if single). For those earning over these amounts, he proposes to let the tax cuts<br /> expire. The most significant impact of these expiring tax cuts would be an increase in the 33 and 35<br /> percent individual tax brackets. These would increase to 36 percent and 39.6 percent, respectively.<br /> Limiting tax deductions<br /> - Another tax increase that will impact higher income families is the limiting<br /> of the benefit of itemized deductions, such as mortgage interest, state taxes and charitable contributions.<br /> This would reduce the efficacy of an itemized deduction by about 25 percent.<br /> Increase the capital gains rate<br /> - For those earning over $250,000, Obama proposes an increase in<br /> the capital gains rate from 15 to 20 percent.<br /> Bank tax<br /> - A tax on banks of $90 billion over the next ten years is proposed. This tax is to pay for the<br /> losses that are emerging from last year's TARP payments.<br /> Oil, gas, and coal tax<br /> - These companies will be exempted from a manufacturing tax break available to<br /> other comparable companies. This will raise taxes on this group nearly $40 billion over the next decade.<br /> Investment managers<br /> - The budget proposes to change the way private equity and other money<br /> managers are taxed. Those folks will see an increase of $24 billion in taxes over the next decade.<br /> Employee growth<br /> - Employers will be eligible for a $5,000 tax credit for each additional employee they<br /> hire during the year.<br /> Make work pay<br /> - Obama proposes to extend this tax break of up to $800 per year for families.<br /> Purchase of capital assets<br /> - Obama has proposed to extend through 2010 a benefit to small and mid-<br /> size businesses that purchase equipment.<br /> <br /> Downey & Company is an independent regional Certified Public Accounting firm serving small and midsize businesses for 25 years. We are providing diffrent services related to <a href="http://www.downeycocpa.com/">Audit & Assurance </a>, Corporate Tax Services and also <a href="http://www.downeycocpa.com/">Business Advisory Services </a>. for more details please visit us at <a href="http://www.downeycocpa.com/">http://www.downeycocpa.com </a><br /> </div> <div class="source">Article Source: <a href="http://www.goinglegal.com/tax-changes-in-the-2011-budget-proposal-1403598.html">http://www.goinglegal.com/tax-changes-in-the-2011-budget-proposal-1403598.html</a></div> <div class="author"> <div class="authorBio"></div> </author> </body> </html>

Text
Tax Changes in the 2011 Budget Proposal Author: downeycocpa If you check out the White House's budget webpage, you may be a bit confused. In large letters it states "A new era of responsibility - the 2011 budget." However, the subsequent budget calls for $1.6 trillion in deficit spending next year. It certainly confused me and seemed paradoxical. The details of the budget are a bit ominous. It projects unemployment to remain at 10 percent this year, decrease to 9.2 percent in 2011 and further decrease to 8.2 percent in 2012. Furthermore, significant budget deficits are outlined for the foreseeable future. The budget includes both tax cuts to certain groups and tax increases to other groups. However, to deal with the bulging deficits, the tax increases greatly outweigh the tax cuts. The tax increases on upper income families alone is approximately $1 trillion over a ten year period. Here are some of the detailed tax proposals in the budget: Bush-era tax cuts - Most of the tax cuts implemented under the Bush administration are set to expire at the end of this year. President Obama's proposal is to extend the tax cuts to those earning under $250,000 ($200,000 if single). For those earning over these amounts, he proposes to let the tax cuts expire. The most significant impact of these expiring tax cuts would be an increase in the 33 and 35 percent individual tax brackets. These would increase to 36 percent and 39.6 percent, respectively. Limiting tax deductions - Another tax increase that will impact higher income families is the limiting of the benefit of itemized deductions, such as mortgage interest, state taxes and charitable contributions. This would reduce the efficacy of an itemized deduction by about 25 percent. Increase the capital gains rate - For those earning over $250,000, Obama proposes an increase in the capital gains rate from 15 to 20 percent. Bank tax - A tax on banks of $90 billion over the next ten years is proposed. This tax is to pay for the losses that are emerging from last year's TARP payments. Oil, gas, and coal tax - These companies will be exempted from a manufacturing tax break available to other comparable companies. This will raise taxes on this group nearly $40 billion over the next decade. Investment managers - The budget proposes to change the way private equity and other money managers are taxed. Those folks will see an increase of $24 billion in taxes over the next decade. Employee growth - Employers will be eligible for a $5,000 tax credit for each additional employee they hire during the year. Make work pay - Obama proposes to extend this tax break of up to $800 per year for families. Purchase of capital assets - Obama has proposed to extend through 2010 a benefit to small and mid- size businesses that purchase equipment. Downey & Company is an independent regional Certified Public Accounting firm serving small and midsize businesses for 25 years. We are providing diffrent services related to Audit & Assurance , Corporate Tax Services and also Business Advisory Services . for more details please visit us at http://www.downeycocpa.com Article Source: http://www.goinglegal.com/tax-changes-in-the-2011-budget-proposal-1403598.html About the Author:

Article Title:
Article Keywords:

return to article

Tax Changes in the 2011 Budget Proposal

Need Help?

Site Info

Webmasters

Business Info