(Source: CCH Incorporated) — President Obama renewed his call for expanding child, family and education tax credits in his fiscal year (FY) 2015 budget proposals as well as for curbing some tax preferences for higher income individuals and businesses. The President unveiled his $3.9 trillion FY 2015 budget proposals on March 4. Many of the proposals are familiar from past budgets, but for FY 2015 the White House is placing special emphasis on passing tax reform for families and lower income individuals.
Obama Emphasizes Individuals, Targets Business Tax Incentives in FY 2015 Budget
Funding for the proposed tax breaks would come from, among other sources, taxing carried interest as ordinary income, extending payroll taxes to cover certain distributions from professional service companies, and restricting the availability of like-kind exchange treatment for real estate transactions. President Obama also indicated support for reducing the corporate tax rate but, in exchange, businesses would surrender some tax preferences. In tax administration, the President proposed to stagger some return deadlines, revise the IRS’s "math error" authority, and more.
Download our Overview of the 2015 Federal Budget Proposal
- Limitations On Deductions For Higher Incomes
- Expanded Earned Income Tax Credit
- Permanent American Opportunity Tax Credit
- Tax Carried Interest As Ordinary Income
- Reproposed "Buffett Rule"
- Enhanced Code Sec. 179 Expensing
- Limitations On Like-Kind Exchanges of Real Property
- International Tax Reforms
- Staggered Filing Deadlines
- "Correctable Error" Authority For IRS