The Whitlock Company, CPAs and Consultants, Springfield Missouri

A new administration brings a flurry of activity to Washington, D.C., and the Obama administration is no exception. Almost immediately after taking office, President Barrack Obama and Congress passed a massive stimulus bill, the American Recovery and Reinvestment Act of 2009 (2009 Recovery Act). Since passage of the 2009 Recovery Act, Congress has been busy debating a host of other tax bills, such as health care reform, an overhaul of the individual income tax rates, the future of the federal estate tax, business tax reform, and more. Lawmakers have reached mid-year 2009 with a full plate of tax bills to enact.

Just over 100 days into his administration, President Barack Obama is releasing more details about his tax policies. The Treasury Department’s recently published “Green Book” (which is called green for the color of its cover) describes the president’s tax proposals. As expected, many of the proposals build on the president’s campaign promises to cut taxes for middle-income individuals. Congress has already begun drafting legislation and debating the president’s proposals, which could be enacted into law later this year.

Several tax provisions in President Obama’s proposed federal budget for fiscal year (FY) 2010 have garnered significant criticism on Capitol Hill since the Obama administration released the budget. Obama’s proposed budget would cost $3.5 trillion, make major long-term changes to individual and business tax, and includes proposals to limit tax deductions for mortgage interest and charitable contributions for higher-income taxpayers, in addition to long-term plans that raise tax rates from their current level for higher-income individuals