At first glance, you might assume President Obama’s proposed federal budget is more of the same — expanding tax credits for families and education, rolling back breaks for wealthy individuals and big businesses. And you wouldn’t be wrong.
But from a tax perspective, there’s a bit more there than usual.
Of the approximately 160 tax proposals in the president’s fiscal year 2015 budget plan, “28 are new or significantly revised from last year’s budget proposals,” CCH writes in a new tax briefing. Those new provisions include the following:
- “Expanding the earned income tax credit (EITC) for childless workers.”
- “Authorizing the Treasury and IRS to regulate paid return preparers.”
- “Requiring minimum distributions from some Roth IRAs.”
- “Consolidating the rules for deducting start-up expenses and organizational expenses.”
- “Capping the amount of deferred capital gain from the ‘like-kind’ exchange of real property.”
- “Requiring materially participating business owners in provisional service S corporations, limited partnerships, general partnerships, or LLCs to pay SECA taxes.”
- “Preventing CFCs from shifting income from digital goods or services to low-tax jurisdictions.”
- “Taxing as a U.S. domestic corporation a foreign acquiring corporation with a greater-than-50-percent interest in a U.S. domestic corporation.”
For businesses, the hits just keep on coming. Check out these summaries of what businesses need to know about the proposed budget:
- 5 things business should know about Obama’s budget (from the Baltimore Business Journal)
- What small business owners should know about Obama’s budget (from The Washington Post)
- Obama’s budget seeks overhaul of business-tax codes (from the Wall Street Journal)
Whether any of this will make the final cut is anyone’s guess. Congress, after all, is waiting its turn to hack the thing apart.
Let the partisan bloodbath begin.