Tax Policy Decisions Ahead: President-elect Obama's Call for Change | Tax

On November 4, 2008, the nation voted to hand over to President-elect Barack Obama, and a strengthened Democratic Congress, the responsibility for shaping the nation's tax and spending policies. Over the course of the campaign, President-elect Obama proposed tax policies that would provide tax relief to low- and middle-income individual taxpayers and restore the higher Clinton-era tax rates for upper-income taxpayers. On corporate taxes, President-elect Obama has not proposed raising rates, but would increase taxes by eliminating targeted incentives and "loopholes"; however, it is largely unclear exactly what proposals he will offer to accomplish this or what the full cost to corporations would be. That is an item to continue watching in the coming months and years.

As President-elect Obama steps into his new role, the United States faces significant fiscal, budget and economic challenges. These challenges will limit the government's ability to tax and spend. How, when and the extent to which President-elect Obama can pursue his tax program will very much depend on the pace of economic recovery.

In "Tax Policy Decisions Ahead: President-elect Obama's Call for Change," Deloitte's Tax Policy Group summarizes the broad tax proposals made by President-elect Obama on the campaign trail, and the challenges of moving his agenda through Congress. It then analyzes proposed tax changes more closely and offers insight on how corporate and individual taxpayers can prepare for changes that may come.

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Clint Stretch, managing principal of the Tax Policy Group, Deloitte Tax LLP, discusses President-elect Obama's tax policy decisions ahead.

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