Obama Outlines Proposed Tax Credits, Other Changes


President Barack Obama, in a State of the Union address Wednesday that focused heavily on job creation, proposed several business and individual tax credits.

 

Obama called for a new tax credit for small businesses that hire workers or raise wages as well as the elimination of all capital gains tax on small business investment. He also proposed providing an unspecified tax incentive for businesses willing to invest in new plants and equipment. A separate White House brief said that the president will also propose extending the increased IRC § 179 expensing limit.

 

Obama also signaled that he will propose to nearly double the child tax credit, to give every worker access to a retirement account and to expand the tax credit under IRC § 25B for those who save for retirement.    

 

The speech included several proposals related to making a college education more affordable. Obama said he wants to end “taxpayer subsidies that go to banks for student loans. Instead, let’s take that money and give families a $10,000 tax credit for four years of college and increase Pell Grants.”

 

Finally, the president appeared to signal a willingness to continue some of the tax cuts from 2001 that are scheduled to expire at the end of 2010, but said, “We will not continue tax cuts for oil companies, for investment fund managers, and for those making over $250,000 a year.”

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: Economy and health care changes top CPAs’ list

CPA decision-makers’ economic outlook and the House Republicans’ proposed tax changes as part of replacing the Patient Protection and Affordable Care Act received attention recently. See how much you know with this short quiz.